Sometimes things don’t go right with your mortgage application, and when that happens you need to make sure that you’re able to get a refund on your mortgage application fees.
Whether you’re applying for your first mortgage or a home equity loan, in many situations you’ll be able to get your money back. Depending on the bank or lender you’re working with you’ll have better luck; just know that if you were denied due to credit issues you may not be able to get refunded. But hey, it never hurts to try right?
Here we’re going to go over some steps you can try to get a refund on your mortgage application fees.
1. Read your application.
You’ll need to read your application to find out how long you have to get a refund. Every lender is different and you’ll want to make sure you have time left.
Some only allow you a few weeks to get a mortgage application fees refund, others have a longer or shorter time depending on the contract.
If you’ve been pre-approved you don’t necessarily have to go through with the mortgage. But always read the application, it’ll have all the rules and information you need to figure out how long you have.
Again, this is something you need to check out on your application.
If you can’t find it (the legalese can be extremely thick when it comes to a home equity loan), you’ll want to call up your lender and ask them for more information.
Ask if you’re able to get a refund for your mortgage application fees, and if you’re going to be able to do it within x amount of time. Many won’t refund the application fees, no matter what, but some will.
It’s one of those situations where you’ll have to talk with them over the phone if you can’t locate the information on your own.
3. Send a written request to refund your mortgage application fees.
Once you know you’re within the time limit and that you can request a refund (or at least try to!), it’s time to send a written request for a refund of your mortgage application fees.
This needs to be sent via fax or certified mail; certified mail is usually your best option because you can prove they received the notice if they say they didn’t later. It costs a little now, but it’ll save you a big hassle later.
4. Bank on any leverage you have.
Your lender may deny refunding your mortgage application fees, but now is the time to bank on everything you can.
Point out your long standing relationship with the bank. Point out any wrong-doing or negligence on their part (“It took you 8 months to process my application, by then I already secured financing somewhere else!”) to see if you can get a refund.
Sometimes they won’t do it, but sometimes they will. It never hurts to try and get your mortgage application fees back if you can.
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About the Author:
Erin Thompson is a mortgage broker and financial blogger for Homebase Mortgages. HBM is a Toronto mortgage broker that provides home mortgages, mortgages for the self-employed, home equity loans and lines of credit, debt consolidation, private mortgage lending and second mortgages. Visit our home equity loans page for more information.