Which document formally obligates the borrower to proceed with the loan?

The document that formally obligates the borrower to proceed with the loan is the Intent to Proceed. This document indicates that the borrower has reviewed the Loan Estimate and wishes to move forward with the loan process. By signing the Intent to Proceed, the borrower is giving their consent to the lender to begin processing the loan, which may include actions such as ordering an appraisal, verifying information, or continuing to gather necessary documentation.

The other documents mentioned serve different purposes. The Loan Estimate provides a breakdown of the loan terms, projected payments, and closing costs, but it does not obligate the borrower. The Closing Disclosure outlines the final details of the loan and must be provided to the borrower before closing, but again, it is not what formally initiates the loan commitment. The loan application is an important document that provides the lender with the necessary information to evaluate the borrower’s creditworthiness, but it does not serve as a commitment to proceed with the loan.