How to Tell a Lender You Went With Someone Else
Gracefully inform a lender you've chosen another loan. Discover how to communicate your decision clearly and professionally.
It is common to explore various financing options when considering a loan. You may ultimately decide to proceed with a different lender or not pursue financing. Informing a lender of your decision professionally and courteously maintains a positive relationship and ensures proper closure of your application. This guide outlines how to effectively communicate your decision.
Preparing Your Notification
Before contacting any lender, confirm your final decision regarding your financing needs. Being certain of your choice prevents ambiguity and streamlines the notification process.
Gather all pertinent details related to your loan application. This includes your application number, the specific loan type, and the name of the loan officer. These details help the lender quickly identify your file and process your withdrawal efficiently. Some lenders have specific internal processes for withdrawing applications.
Selecting Your Communication Channel
Various channels are available for communicating with a lender. The most suitable option depends on urgency and your preference for a written record. A phone call provides immediate communication and allows for direct confirmation of receipt. This method is suitable for quick notifications.
Email offers a written record of your communication. It allows you to compose your message carefully and attach any necessary information. A formal letter provides the most official written record and might be preferred for highly formal notifications. Some lenders may specify a preferred method for cancellation.
Composing Your Message
When drafting your message, regardless of the chosen channel, maintain a professional and courteous tone. Begin with a polite opening that clearly states the purpose of your communication. Directly and concisely inform the lender that you have decided to pursue a different financing option or no longer require the loan.
Express gratitude for their time and effort. Avoid providing lengthy explanations or justifications for your decision. A simple statement of your choice, coupled with a thank you, is sufficient. For example, stating, “Thank you for your attention to our transaction, but I have ultimately selected a different lender,” is clear and professional.
Following Up After Notification
After sending your notification, confirm that the lender has received and processed your request. If you sent an email or formal letter, consider a brief follow-up call within a few business days to ensure it was received and acted upon. This helps prevent misunderstandings or continued processing of your application.
Check for final paperwork or confirmation that your application is officially closed. This might include a formal withdrawal confirmation or an update to your online status. If a lender attempts further contact, politely reiterate your decision not to proceed with their services.