I was told in a refinance proposal from a bank that I would not have to pay for the home appraisal if I chose not to go through with the loan. I asked for this in writing and they told me that they could not do that. Why can't they provide it in writing?
Banks often have a set procedure on the way they do things. If this is a special program they follow, there is no need for it to be reduced to writing. If any of the bank staff wants to provide such a letter, it may well be that it would have to be approved by one or two people including a lawyer, and it simply may not be worth the hassle.
If they order an appraisal on your existing home, you wouldn't have to pay for it if you rescinded. That rescission period is the required three business days from when you close the loan until they can fund it. You could rescind it and you'd get back all your fees.
Some consumers see this as an opportunity to get a free appraisal. It isn't. They don't have to share it with you unless you pay them for it. Lastly, be aware that - depending on the bank, the loan and other issues - they may just do an in-house appraisal and not something as formal as was done when you bought your home.
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Banks often have a set procedure on the way they do things. If this is a special program they follow, there is no need for it to be reduced to writing. If any of the bank staff wants to provide such a letter, it may well be that it would have to be approved by one or two people including a lawyer, and it simply may not be worth the hassle.