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Free sample pre approval letter for mortgage [2024]

This post covers sample pre approval letter for mortgage.

My original plan was to simply share a sample letter and leave.

Even if it might be exactly what you’re looking for, I believe it would be better to guide you on all significant details about pre approval letters for mortgage so that you can have a wider understanding.

Therefore here I will take you through

  • What is a pre approval letter for mortgage
  • Why is it necessary
  • How do you write an effective pre approval letter for mortgage
  • sample pre approval letter for mortgage
  • sample pre approval letter for mortgage pdf

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What is a pre approval letter for mortgage

A pre approval letter for mortgage is a brief statement of facts written by a lender to a borrower to confirm their willingness to lend a borrower a specified maximum amount of money.

This letter is not binding, It is merely an initial confirmation that the borrower has good credit thus a lender is comfortable to give him a certain amount of money to finance his real estate deal.

Let me give you an example so that you can clearly understand how things actually work.

For resistance, you want to purchase a house but you don’t have the cash to pay for it. Alternatively, you will apply to a mortgage company to finance your transaction.

A mortgage company will want to ensure that you are capable to repay the loan so they will ask you to furnish some personal information like tax returns, pay stubs, Government ID, Screenshots of bank statements, stock portfolios, Income/Employment Verification letter, check your credit score (A minimum score is usually around 620640 to be approved for a conventional loan), etc.

In responding to your application the mortgage company will issue you a pre-approval letter to certify that they will give you a certain amount depending on their findings.

That is how a pre approval letter for mortgage come into play.

But that is not the END of our story.

Once you have passed the preapproval stage, the lender will take you to the commitment stage before he gives you the loan.

I believe things are clear now!

If you prefer a full guide on how you can get a pre-approval letter, I find this one from more useful.

Otherwise, let’s move to the next section

Related: letter of intent to purchase real estate (guide + sample)

Why is a pre approval letter for mortgage necessary?

The following are the benefits of a pre approval letter for mortgage

  1. It is quick evidence that you have solid financial credit.
  2. It acts as tangible evidence that you are a serious customer to everyone involved in very substantial real estate transactions.
  3. An offer from a pre-approved buyer is more valuable than one from a competing home buyer who does not have a letter. A seller is more likely to accept a lower offer from a pre-approved buyer than from someone without a letter.
  4. Pre-approval letters convince real estate agents that they should devote their time and resources to assisting you in finding a home and negotiating an offer because they confirm your status as a serious buyer.
  5. When purchasing a house you are not required to offer the maximum amount indicated in your pre-approval letter. You should choose an amount that you can comfortably afford.

How do you write an effective pre approval letter for mortgage

A pre approval letter for mortgage is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the potential borrower’s address, and state that you are writing to inform the borrower that he is pre-approved to get a certain amount of money. Provide the parameters of the loan and other conditions to be met to finalize the loan.

Finish your letter with SINCERELY followed by your signature, name, and position.

REMEMBER the aim of your pre approval letter for a mortgage is to inform the borrower that he is pre-approved to obtain the loan.

Therefore to write an effective pre approval letter for a mortgage do the following

  • Provide your name/organization, address, and contact information
  • Include the date of the letter
  • Include the potential borrower’s name, address, and contact information
  • Instantly tell the borrower that he is pre-approved (in your opening paragraph)
  • Provide the address of the property regarding the mortgage
  • Provide the purchase price
  • Provide the loan amount
  • Provide the loan type
  • Provide the payment term
  • Provide the interest rate
  • Provide the conditions to be met to finalize the loan
  • Provide the disclaimer that the letter is not binding
  • Provide the duration regarding the validity of your letter
  • Be straightforward
  • Maintain a professional tone
  • Be honest

Sample pre approval letter for mortgage

Your Name
Organization Address
City, State, Zip Code




[Potential Borrower’s Name]
[Potential Borrower’s Street Address]
[Potential Borrower’s City, State, and Zip Code]

Re: Pre-aproval letter for mortgage

Dear [Borrower’s last name]

It is with great enthusiasm we are writing this letter to inform you that you have been pre-approved for a home mortgage loan with the following particulars

  • Property Address: 7605 Bridle Rd, El Cajon, CA 92021
  • Purchase price: $320,000
  • Loan amount: $290,000
  • Term of Loan: 20 years, conventional
  • Type of Loan: VA
  • Property Type: Residential
  • Interest rate: 11% p.a

The final loan approval letter will be mailed to you following the completion of the loan approval process, document re-verification, and fulfillment of the following requirements:

  • Your credit score has remained unchanged.
  • Your assets, liabilities, employment status, and income have all remained unchanged.
  • You have secured the title of the property.
  • The purchase price has been supported by a property appraisal process.
  • There are sufficient funds to make the down payment.
  • The final underwriting approval has been received.

Please keep in mind that this pre-approval letter does not imply that your loan has been approved or in any way guarantees a loan. The funding of the aforementioned property has yet to receive official underwriting approval.

Note further that, this letter will expire in 90 days and is subject to change at any stage of the loan approval process. It is not a legal document and does not constitute a contract in any way.

This letter’s rights are strictly non-transferable.


Name, Title

Sample pre approval letter for mortgage pdf

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Isack Kimaro
Isack Kimaro

Isack Kimaro, a lawyer, Creative Writer and self-taught SEO expert has been a prominent author of law-related topics since 2017. Through hard work, dedication, and a relentless pursuit of knowledge, Isack has successfully navigated the legal industry by providing valuable and easy-to-understand legal information to 500,000+ individuals of all levels of understanding.