Can Amscot tell if I have another loan out?

I have 2 banks processing my mortgage loan. Is it ok to tell one of them that I dont need a loan from them?

• I am working with Bank Of America for mortgage loan. They initially pre-approved me and after getting the offer accepted I submitted all the documents. They told me that there wont be any problem with the loan after reviewing the documents, but suddenly after 10 days they said that my loan might not be approved. So I was suggested to seek loan from another bank. Bank of america said they will continue processing my loan because they have already started the process. Meanwhile I reached out to Chase bank for my mortgage. I submitted all the documents to chase and they have done the appraisal too. Now I have both the banks telling me that I will be qualified for the loan and they are going ahead to submit my file for underwriting. I did not tell Chase that I am still getting my loan processed by Bank of america. But BOA is giving me a better rate. How do I tell Chase that I wont be going ahead with them? Is that ok to say?

• Answer:

  Crunch the numbers before you spill the beans. Realize the loser (and the winner), will be making you pay for the cost of the appraisal plus possible administrative fees. Make sure the amount of savings in rate will cover the costs the loser will charge you. I think what you have done is underhanded to wait until the bottom of the ninth inning to fess up, but not unheard of. It would have been completely acceptable if you had done so before the 2nd appraisal was done.