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Dee
Dee asked in Business & FinanceRenting & Real Estate · 9 years ago

Home Loans: I have applied for a home loan & now want to cancel...it there a cancellation fee?

I have applied for a Home Loan and the loan company wanted me to pay off all of my bills, I did so and now they are asking me to Close out 3 of my Credit Cards. The credit cards I have had for decades and feel I should not have to do this. I have no debts and it is for a small loan of $70,000. that I plan to have only for less than a year. Can I cancel this Loan Application without penalty? I have found an alternative to purchase the home myself without taking out a Home Loan. They have been holding up my Home Loan purchase. Any advise would be appreciated.

Update:

There is a clause that I would have to pay the closing costs if I cancelled the loan....but I don't feel this is right if they are the ones asking me for things I was not told of up front. If I don't have the loan thru them...where is the stopping point of changing my mind of going thru them. The broker I have is not available and has not been for a week now and I am having to deal with a different person. There has to be a limit as to what I need to do and I feel they have over-stepped my limits. I am hoping someone can enlighten me legally as to what I can/cannot do.

Update 2:

I have zero balances on all of my credit cards and have no debt what-so-ever....so this should not be an issue.

2 Answers

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  • Judy
    Lv 7
    9 years ago
    Favorite Answer

    There shouldn't be a cancellation fee. But any money you're spent so far isn't likely to be refunded.

  • loanmasterone
    Lv 7
    9 years ago

    Normally mortgage lender do not charge a cancellation fee if you decide you no longer want the mortgage loan.

    You might try a mortgage loan that does FHA mortgage loan. the approval criteria is not as stringent as a conventional mortgage loan.

    Normally in order to have a proper debt ratio you might be required to pay off certain credit card debt of other consumer loans.

    I hope this has been of some benefit to you, good luck.

    "FIGHT ON"

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