How to Terminate a Mortgage Application

You can terminate your mortgage application even if you've already signed it and sent in all the papers required by the lender. You may cancel your mortgage application at any time before you close the loan, but you may lose application fees you already paid, and you may also have to pay a penalty. How much canceling your application costs you depends on the lender, the mortgage type and the fees you've paid.

Speak to a lender representative or your mortgage broker immediately. Request cancellation of the application. Ask for the necessary cancellation paperwork and much you'll lose or owe by cancelling so you're prepared.

Write a letter to the lender. State you want to cancel the application. Give your name, the date of the application and the number associated with your application, if you have it. State the date and time you told the lender or broker you're cancelling the application and who you spoke to. Request the return of any original documents the lender still has, such as your W-2 forms, and the refund of any refundable fees. Make a copy for yourself.

Send the cancellation letter to the lender using certified mail, return receipt requested. Keep the returned receipt with your letter copy.

Complete and return all forms related to the cancellation sent to you by the lender. For example, you may have to sign a formal application withdrawal form. Make copies of all paperwork you return to the lender for your reference.

Contact the lender or mortgage broker approximately a week after sending the letter to confirm the application's cancellation.


  • Throughout the process, keep a log that shows who you spoke to and when regarding your loan cancellation.
  • Contact the loan officer working on your application, if possible, to tell him you're cancelling.

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About the Author

Anna Assad began writing professionally in 1999 and has published several legal articles for various websites. She has an extensive real estate and criminal legal background. She also tutored in English for nearly eight years, attended Buffalo State College for paralegal studies and accounting, and minored in English literature, receiving a Bachelor of Arts.