You may owe fees if you pull out that normally would be paid at closing such as application, origination,credit report, or appraisel fees. It depends on what you have signed and what you have done so far in the process.
If you do not have a good rapport with your mortgae professional tal to their manager or the top person at that company. Or speak with your real estate attorney about what is happening and ask him to advise you or intervene on your behalf. You mention a problem with how they process your papers. There are legal guidelines on how your personal info is handled and your authorizations for privacy if this is an issue definetly speak with your attorney.

Georgia Westcott
Broker/Owner
The Westcott Group Real Estate Company
17 Deer Park Ave
Babylon New York 11757
631-661-8888

How far in the process are they and what is your agreement with them--is it really in your best interest to switch--only you can make that decison.

I am local to you , you can pull put whenever you want. i hope your working with a lender, such as myself. Wells Fargo finances 1/4 homes in amaerica, we have a closing guarantee, meaning if we aren't ready to close when contracts are drawn we pay your first months mortgage payment. Contact me and I can show you the best rate and term, thanks!

what money would you owe them? when they close - they get paid - period.

First be honest with yourself: Have you contributed to the delay in the processing of your application? Have you been less than timely in producing any documentation the lender requested, or been tardy in scheduling appraisal (or inspection)?
Now consider that the company may be applying its best efforts.
The loan process consists of various conditions that must be satisfied. If your lender (mortgage company) is brokering the loan, the transaction is subject to new conditions appearing at any time in the process from the investor (lending institution) or the title company. The mortgage company has no control other than to find the solution. Thus, unforeseen delays appear as a normal matter of course in real estate finance.
Before you cancel, have you clearly understood what has taken place in your transaction so far, the timeline, and what your lender has done to resolve issues?
Yes, you can withdraw your application without incurring further costs.
(Be aware that the company has incurred expenses, and do inform them of your decision.)
Don't make it a habit! Do tell your new lender what happened.