Loan Application Cancellation Letter Format & Example

A loan application cancellation letter is a letter in which an applicant tells a lender they would like to cancel their loan application. Most people need to request the cancellation of a loan application at some point in their life. You might apply for loans with several lending institutions and choose the best offer, for example. In this case, you should write a loan application cancellation letter to the lenders you do not use.

This article explains the process of canceling a loan application and what you need to include in your cancellation letter. We provide a format and a sample letter for you to read.

The Process of Canceling a Loan Application

The process of canceling a loan application begins and ends with calling the lending institution. Don’t neglect to take all of these steps when canceling a loan.

  • Call the lender. As soon as you decide you do not want the loan, call the lender and notify them you wish to cancel your application. Ask about cancellation fees.
  • Request cancellation forms. During your call, request any required cancellation forms. Some lenders require these for cancellation requests.
  • Write your letter. Write your letter in a professional format and tone. You can use the format provided below to ensure your letter contains all the necessary information. Print your letter, don’t handwrite it.
  • Fill out the forms. Complete any required loan cancellation forms and mail them with your letter. Send your letter and completed forms via certified mail, so you will know when the lender receives them.
  • Call the lender. About one week after the lender receives the letter, call them to confirm they have processed your cancellation request.

What to Include in Your Loan Application Cancellation Letter

  • The date
  • The date you applied for the loan
  • The loan application number
  • The borrower’s name, as you wrote it on the loan application
  • Your reason for canceling the loan application
  • A statement that cancellation forms are enclosed if applicable
  • Your contact information

Important!

The lender might not refund any application fee you paid, and you may be required to pay a cancellation fee. You may also incur additional expenses for items the lender has paid for, such as a home appraisal fee. Ask the lender for documentation of any expenses they incurred for your loan application.

Loan Application Cancellation Letter Format

{your name}

{your address}

{date}

{recipient name}

{lending institution name}

{lending institution address}

Dear {recipient name},

I am writing to formally request the cancellation of my loan application number {number of application}. I filed this application with {lending institution name} on {date}. I understand I will not receive a refund of my application fee, and there {(is) or (is no)} cancellation fee. {I have enclosed check number {number} in the amount of {amount} to pay the cancellation fee.} {Enclosed, you will find the cancellation forms you requested.}

{Describe why you chose to cancel the loan application here.}

Please return the documents I filed with my loan application as soon as possible. If you have any questions, please contact me at {phone number} or {email address}.

Sincerely,

{your signature}

{your name as it appears on loan application}

Sample Loan Application Cancellation Letter

Sarah James

2006 South Jamestown

Tulsa, OK 74882

My 28, 2038

Mrs. Eleanor Franklin

National Bank and Trust

5986 West Houston

Tulsa, OK 74884

Dear Mrs. Franklin,

This letter is a formal request to cancel my loan application number J874692. I placed this loan application with National Bank and Trust on May 15, 2038. You informed me that there is no cancelation fee, and I understand you will not refund my loan application fee. I have enclosed the cancelation forms you requested.

I applied for a loan with several lenders, and I have accepted an offer with a lower interest rate.

Please return my loan application documents as soon as possible. Please contact me at (282) 997-2443 or sarahjames@email.com if you have any questions.

Sincerely,

Sarah Campbell James

Sarah Campbell James

Enclosure: Cancellation forms

Loan Application Cancellation Letter (Word Template)

Loan Application Cancellation Letter (Word Template)

Key Points

  • Follow the loan cancellation steps provided
  • Use a professional letter format like the one provided
  • Include the loan application number and the date you placed the application
  • Include a brief explanation for your cancellation
  • Enclose cancellation forms and payment of the cancellation fee if applicable
  • Sign your letter with your name as it appears on the loan application

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