Mortgage Loan Application

Once you have selected a mortgage company and mortgage loan originator to proceed with processing your mortgage loan application, your mortgage loan originator will prepare a mortgage application package which is most likely over 50 plus pages along with dozens of additional pages of disclosures.  All of these pages will require your signature as well as your co-borrower’s signature if you have one.  Once you signed the mortgage loan application as well as the disclosures, your mortgage loan application gets processed and once processed, it gets submitted to an underwriter who will be the decision maker of whether your mortgage loan gets approved or denied.   Your mortgage loan originator will most likely know before hand if there might be a problem with an approval.

Signing Mortgage Loan Application Does Not Bind You To The Loan

When you sign the official mortgage application, it might seem like you are giving your life away.  Literally, it is over 50 plus pages.  Does signing all of these mortgage documents obligate you in any way or form?  The anwer is no and we will delve more into this in the following paragraph.

How Long Do I Have To cancel My Mortgage Loan Application?

A mortgage loan borrower can cancel their mortgage application at anytime during the mortgage approval process.  The mortgage loan borrower is not obligated to go through with the mortgage loan without incurring any fees or costs from the mortgage lender.  The only fee the mortgage loan borrower is obligated to pay is the third party appraisal fee.  Even though there is a lot of work involved in the mortgage application process, the mortgage loan borrower can even cancel the day of the closing without being liable to go through with the mortgage loan.  A mortgage loan borrower can fire his or her mortgage loan originator at any time during the mortgage loan approval process.  A mortgage loan originator or mortgage lender cannot charge a mortgage loan borrower any origination fees or other fees if the mortgage loan borrower either cancels the mortgage application or the mortgage loan gets denied.

Fees Associated With Mortgage Loan Application

There should be no upfront mortgage loan origination fees or costs to apply for a mortgage loan or during the mortgage loan approval process except for the appraisal fee.  There are credit report fees and the wholesale lender might have an underwriting fee and/or origination fee, but these fees are only charged if and only if the  mortgage loan closes.  If the mortgage loan borrower decides not to go through with the mortgage loan or the mortgage application gets denied, there is no fees or costs that the mortgage loan borrower is obligated to pay.

By Gustan Cho

www.gustancho.com

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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