What indicates that a borrower is obligated to the loan?

A signed intent to proceed is a definitive indicator that a borrower is obligated to the loan. This document signifies that the borrower has reviewed and agreed to move forward with the loan process after receiving an estimate of the loan terms and conditions. The act of signing demonstrates the borrower’s awareness and acceptance of the steps involved, thereby establishing a formal commitment to proceed with the loan as outlined by the lender.

In contrast, submission of a credit report does not itself signify an obligation to the loan, as it is merely a part of the information-gathering process. Similarly, completing a loan application shows interest but does not amount to a binding commitment, and payment of the application fee, while a step in the process, is not an indicator of the borrower's intent to take on the loan terms. Therefore, the signed intent to proceed is the most clear and direct expression of a borrower's obligation.