Will I have to pay a app fee if I decide that I dont want the mortgage from a lender anymore.

[Anonymous]

I applied for a mortgage loan with Coldwell Banker, and Harris Bank on the same day. I was instantly pre-approved over the phone after completeing the application at 4.75% with Coldwell Banker for $200K.  Harris Bank said that it would take 1-2 business days before they would give a decision. Harris Bank has a $495 application fee that would be rolled into the mortgage if approved, and nothing would be expected if denied. Now that I got the Coldwell Banker approval and after finding out that Harris rate will be 5.5% I do not want to even pursue that application with Harris anymore. I was wondering will I still have to pay the application fee to Harris if I am approved and turn down the loan? Or Should I just ignore thier requests to provide pay stubs, statements etc. so that I will be denied and not have to worry about the fee.

[itsjustmeibe]

Did you pay the fee, or give authorization via credit card? I think the fee covers the appraisal & credit report, which they won't have to order the appraisal if you don't go through them. It depends on what the fee covers as to whether or not you have to pay it, I would think.

[Anonymous]

No I did not give a credit card number or anything, and I don't even believe they have pulled my credit yet because the inquiry from CB has already shwoed up, but I do nothave one from them yet. Should I call them and ask them to cancel the app, or just wait on them to contact me. What do you think?

Message Edited by ebss on 04-16-2009 11:23 AM

[itsjustmeibe]

I wouldn't call them, it's not like they'll send you a bill or anything. When they call you, let me know you changed your mind, that's all.