Sample Mortgage Pre-Approval Letter

A Mortgage Pre-Approval Letter is a document issued by a lender that outlines the loan amount a borrower is eligible for based on a preliminary review of their financial information. This letter signals to sellers and real estate agents that the borrower is financially prepared to make an offer on a property.

A pre-approval letter typically includes details such as the approved loan amount, loan type, estimated interest rate, and expiration date. It is based on the applicant's income, credit history, and debt-to-income ratio. While this letter strengthens a buyer's position in negotiations, final loan approval is subject to additional requirements, including property appraisal and further financial verification.

This sample mortgage pre-approval letter demonstrates how lenders assess a borrower's qualifications and issue a formal confirmation of pre-approval. To proceed with a mortgage, applicants should stay informed of any lender conditions that must be met before final approval is granted.