When a borrower applies for a new mortgage, he expects to close the deal within a set time frame. However, situations may arise that prevent the closing from happening. Anything from a changed mind to a changed financial situation to a real estate contract that becomes null and void can cause a borrower to want to withdraw or cancel his mortgage application. To cancel a mortgage application, any borrower simply needs to follow a few steps.

Call your mortgage lender or send him an e-mail. Request a cancellation of your mortgage application.

Pay any fees that are owed to the lender, such as application fee, appraisal fee, title search fee or credit report fee.

Request a copy of your credit report, any signed documentation and your original application for future reference, if needed.

Save the "Statement of Denial" letter that was sent to you by the lender upon your cancellation as proof of your cancelled mortgage application.


Inform your lender as soon as possible when you decide to withdraw your mortgage loan application. This will prevent him from continuing to work on your application and possibly increasing your fees to cancel the application.


You can cancel your mortgage loan application at any point in the process prior to closing. However, if you have signed the closing documentation, you can only get out of the new mortgage debt within three days of closing a cash-out refinance or home equity line of credit on your mortgage. In all other instances, you are legally liable for the mortgage debt.