Bank Application Fee After Withdrawn Offer

4 Replies

Hi all,

Just wondering if this is common practice or my bank is trying to pull a fast one. A few months ago I put in an offer that was accepted by the seller. As such, my lender (Chase) started the actual application process. After the inspection revealed big structural issues, I withdrew my offer. However, Chase has not refunded my $655 application fee. I am currently in contract with another property and Chase has charged another $655. Is this normal? Should I really be charged for the deal that did not go through? 

Any info would be much appreciated! Thanks all!

Yes.  The application fee is for starting the process, verifying income, credit reports, underwriting, etc.

Originally posted by @Joe Ramirez :

Hi all,

Just wondering if this is common practice or my bank is trying to pull a fast one. A few months ago I put in an offer that was accepted by the seller. As such, my lender (Chase) started the actual application process. After the inspection revealed big structural issues, I withdrew my offer. However, Chase has not refunded my $655 application fee. I am currently in contract with another property and Chase has charged another $655. Is this normal? Should I really be charged for the deal that did not go through? 

Any info would be much appreciated! Thanks all!

I work for Bank Of America and we have no application fee. We only charge

the card for an appraisal and a credit report fee. If you have not received a GFE in the mail and confirmed that you want to proceed, then nothing is charged to your card. This fee sounds really high. If they wont refund this, in the future I would consider using a different bank if I were you. Bank Of America can only not refund the customer once the appraisal is COMPLETED.

Although I agree with @Account Closed  that the fee seems a bit high, the bank is under no obligation to refund it.  What is "common practice" probably varies bank to bank. 

I have had the fee refunded once and reduced once. 

As a mortgage broker in California, I'm not sure how a bank can charge an application fee and not refund you the money especially with the new regulations from the SAFE act.  I know for a fact that the only upfront costs that I could collect are for pulling credit and or money for the appraisal.  A $655 application fee is obsured...this is a commission only business which means that you don't get paid if you're deal doesn't go through. You might want to check with your state regulators to see if this is even legal. 

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