Pre Approval Letter
A Pre-approval letter is written to confirm a property purchase which is a requirement in certain states of the country. It is usually prepared by the loan financier or lender with specific loan amount stated in the letter with an expiry date of the suggested loan. It is a required document by most property agents before performing any purchase transaction. The letter mentions the proof of income, proof of assets, good credit scores of the individual and even employment verification and document verification.
A pre-approval letter gives the lender a clarity about the person obtaining a loan for large-scale purchases, especially for a house or the purchase of a new car or an expensive movable or immovable product. The letter is written formally, as a legal letter and must be drafted carefully. The credit score of the individual who takes the loan must be mentioned, which facilitates quicker approval of the loans. The letter is a prerequisite for obtaining a loan and must be correct to receive a loan quickly and without hassle.
The following is a Sample Pre-approval Letter.
2562 Deer Ridge Drive,
Montclair, NJ 07042,
The United States of America.
Borrower: Ms. Sabrina Drew
Escrow #: TBD
Property: 1901 North West Drive, Ontario, CA
Loan Type: Conventional Financing
The buyer mentioned above has applied for a home loan and has been approved through Morley Real Estate Services. This approval is subject to a completed Uniform Residential Loan Application as well as a valid verification of borrower’s income and credit. This loan approval is based on a sales price of $180,000.00.
The buyer has a very good credit score as received from the Federal Bank over the past five years. The credit score reflects a very strong capability of the candidate to repay the loan within the stipulated period. The letter has taken great cognizance of the fact that the candidates for the loan are customers of our bank and have been for the last 12 years.
The Conditions of this credit include:
1. A satisfactory appraisal report to support the mentioned sales price
2. A fixed interest rate with a confirmed loan amount
3. Specific escrow instructions
4. Expiry Date of Loan: DD/MM/YYYY
Funding conditions and credit documentation are required for a smooth approval process.
Please feel free to contact the undersigned for any clarifications on this pre-approved loan letter.
Thank you for using Central Bank for your real estate financing needs.
CA DRE # 012045950,
The United States.