Borrower instruction after receiving a Loan Estimate that permits the lender to continue and charge most application fees.
Intent to proceed is the borrower’s instruction, after receiving a Loan Estimate, that the lender should continue with the mortgage transaction described in that disclosure.
Intent to proceed protects the borrower’s opportunity to review and compare the Loan Estimate before most application-related fees are imposed. With one main exception, the lender or another person generally cannot charge an application, appraisal, underwriting, or similar fee until the borrower has received the Loan Estimate and indicated intent to proceed.
A bona fide and reasonable fee for obtaining a credit report is the main fee that may be charged earlier. After intent is documented, the lender may collect other authorized fees and order work such as an appraisal.
Intent is an early processing decision, not a final commitment to borrow. It does not approve the mortgage, lock the interest rate, waive loan conditions, or guarantee that the transaction will close.
Borrowers encounter intent to proceed shortly after receiving the Loan Estimate and before the file moves deeper into processing and Underwriting. The lender may ask the borrower to communicate through an online portal, email, telephone call, signed form, or another documented method.
The borrower can generally indicate intent in any manner chosen unless the lender requires a particular communication method. Silence is not intent. The lender must document the borrower’s communication rather than treating a lack of response as permission to proceed.
The Loan Estimate states how long its estimated closing costs are available. If the borrower waits more than 10 business days after the estimate was provided, or longer than any period the lender allows, the lender may be able to revise the estimated charges before proceeding.
| Term | What it answers |
|---|---|
| Loan Estimate | What early loan terms, payments, and closing costs were disclosed? |
| Intent to Proceed | Has the borrower told this lender to keep processing the application? |
| Rate Lock | Is the quoted rate protected for a defined period? |
| Conditional Approval | Has underwriting approved the file subject to remaining conditions? |
| Closing Disclosure | What final terms and charges are reviewed near closing? |
A borrower receives Loan Estimates from two lenders. After comparing the rate, payment, lender credits, fees, and cash to close, the borrower emails one lender: “Please continue with this loan application.” The lender records that communication, collects the authorized appraisal fee, and orders the appraisal.
The borrower has expressed intent to proceed, but the loan still must pass underwriting. If the rate was not already locked, the borrower must address the rate-lock decision separately.
The borrower should compare the estimate’s major terms before directing the lender to continue:
Intent should relate to the transaction shown on the Loan Estimate. If the desired product or loan amount is different, the borrower should ask the lender to explain how the change affects pricing and disclosures.
After receiving and documenting intent, the lender can continue ordinary processing. That may include collecting authorized fees, ordering the appraisal, verifying income and assets, reviewing title information, and submitting the file to underwriting.
Intent does not prevent a borrower from later withdrawing the application or choosing another lender. The borrower may, however, have paid for completed third-party services by that point, and changing lenders can affect timing.
Intent to proceed differs from the Loan Estimate because the Loan Estimate is the disclosure document, while intent to proceed is the borrower’s response after reviewing it.
It differs from Rate Lock because intent authorizes continued processing, while a rate lock protects specified pricing for a defined period. One does not automatically create the other.
It differs from Conditional Approval because intent is a borrower choice near the beginning, while conditional approval is a lender underwriting decision subject to remaining conditions.
It also differs from Clear to Close. Clear to close is a late-stage lender milestone, not the early borrower signal to continue.