Mortgage Pre-approval Letter Sample

By | January 9, 2015

A pre-approval letter is somewhat different from a prequalification letter in the sense that the former is more profound. Where a prequalification letter is written following basic prospective borrower information, a preapproval letter is issued only when a verification of the information has been done. It takes much more time to handle preapprovals as opposed to prequalification and carries more weight.

Once this kind of letter has been sent to a borrower, he or she will know exactly how much amount he / she is eligible to borrow. Where prequalification letters only provide borrowers with a rough idea of how much they are eligible for, a preapproval letter gives detailed information. This letter should point out the terms of the mortgage loan but does not necessarily need to be very detailed. This detail can be incorporated into subsequent documents when a loan has finally been approved.

This kind of letters are written to prospective borrowers after investigation into their information has been completed. This may require a loan officer to look through provided bank statements, income letters and employment agreements and performing credit history checks.

Mortgage Pre-approval Letter Sample

January 9, 2015

Ms. Grace Alexander
89 Whipple Street
North Hollywood, CA 82735

Subject: Mortgage Preapproval

Dear Ms. Alexander:

Based on copies of income slips and banks statements that you provided to us, we have determined that you qualify for a mortgage loan from Duncan Mortgage Services. We would like to congratulate you on this approval and anticipate that you will eventually be able to realize your dream of buying a house.

Please refer below for details of the mortgage plan that you have been approved for, based on our investigations:

Mortgage Loan: Floating Rate
Loan Amount: $20,000
Down Payment: $5,000 (@25%)
Term: 36 months
Qualifying Rate: 9%

The above-stated mortgage loan plan has been specifically designed by us to suit your needs and is based on your payback capability. If you believe that this may not suit you, you are welcome to apply for a modification and we will comply if your proposed terms conform with our procedures and policies. Please note that any prevailing taxes have not been mentioned here and will only be added once the actual down payment amount is calculated after approval of the loan.

This letter does not guarantee loan approval however, now that all investigations have been completed, it will take less time to process your application. Please call us at (555) 555-5555 if you have any questions or concerns about the mortgage application process.

Thank you,


Warm regards,

Martha Stewart
Loan Originator
Duncan Mortgage Services
2737 Acama Street
North Hollywood, CA 82634