Getting pre-approved for a mortgage is a crucial step in the home-buying process.
It not only gives you a clear idea of how much you can afford, but it also shows sellers that you’re a serious buyer.
A pre-approval letter from a lender can make all the difference when you’re competing with other buyers for your dream home.
To help you understand what a pre-approval letter looks like and what information it should include, we’ve put together 15 sample pre-approval letters.
These examples cover a range of scenarios, from conventional loans to FHA and VA loans, and can serve as a helpful reference as you navigate the mortgage pre-approval process.
Sample Pre-approval Letters for your Mortgage Application
Pre-approval Letter Sample 1
Subject: Pre-approval for a Conventional Mortgage Loan
Dear [Borrower Name],
We are pleased to inform you that based on the information you have provided, you have been pre-approved for a conventional mortgage loan of up to $350,000. This pre-approval is valid for 90 days from the date of this letter, subject to the following conditions:
1. Verification of your employment and income
2. Verification of your assets and down payment funds
3. Satisfactory appraisal of the property you wish to purchase
4. No significant changes to your credit profile or financial situation
Please note that this pre-approval is not a commitment to lend and is subject to final underwriting approval. If you have any questions or need further assistance, please don’t hesitate to contact us.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 2
Subject: FHA Mortgage Pre-approval
Dear [Borrower Name],
Congratulations! After reviewing your mortgage application and supporting documents, we are pleased to inform you that you have been pre-approved for an FHA mortgage loan of up to $275,000. This pre-approval is based on the following terms and conditions:
1. 3.5% down payment
2. 30-year fixed-rate mortgage
3. Interest rate of 3.75% (subject to change based on market conditions)
4. Satisfactory completion of all underwriting requirements
This pre-approval is valid for 60 days from the date of this letter. Please keep in mind that this is not a final loan approval and is subject to change if there are any material changes to your financial situation or credit profile.
If you have any questions or concerns, please feel free to reach out to us. We look forward to helping you achieve your homeownership goals!
Best regards,
[Lender Name]
Pre-approval Letter Sample 3
Subject: VA Loan Pre-approval
Dear [Borrower Name],
Thank you for choosing [Lender Name] for your VA home loan needs. We are honored to assist you in your homebuying journey and are pleased to inform you that you have been pre-approved for a VA mortgage loan of up to $400,000.
Your pre-approval is based on the following factors:
1. Your eligibility for a VA loan as a qualified veteran or active-duty service member
2. Your satisfactory credit score and credit history
3. Your stable income and employment
4. Your ability to provide the necessary documentation to support your loan application
Please note that this pre-approval is subject to a satisfactory appraisal of the property you wish to purchase and final underwriting approval. This pre-approval is valid for 120 days from the date of this letter.
We are committed to providing you with exceptional service throughout the mortgage process. If you have any questions or require further assistance, please don’t hesitate to contact us.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 4
Subject: USDA Loan Pre-approval
Dear [Borrower Name],
We are delighted to inform you that you have been pre-approved for a USDA home loan of up to $225,000. This pre-approval is based on your eligibility for a USDA loan and the information you have provided in your mortgage application.
Your pre-approval is subject to the following conditions:
1. The property you wish to purchase must be located in an eligible rural area
2. The property must meet USDA property guidelines
3. Your income and credit qualifications must remain consistent with the information provided in your application
4. Satisfactory completion of all underwriting requirements
This pre-approval is valid for 90 days from the date of this letter. Please keep in mind that this is not a final loan commitment and is subject to change if there are any material changes to your financial situation or credit profile.
We are here to guide you through every step of the USDA loan process. If you have any questions or concerns, please don’t hesitate to reach out to us.
Best regards,
[Lender Name]
Pre-approval Letter Sample 5
Subject: Jumbo Loan Pre-approval
Dear [Borrower Name],
We are pleased to inform you that you have been pre-approved for a jumbo mortgage loan of up to $1,200,000. This pre-approval is based on the information you have provided in your mortgage application and is subject to the following conditions:
1. Verification of your employment, income, and assets
2. Satisfactory appraisal of the property you wish to purchase
3. No significant changes to your credit profile or financial situation
4. Final underwriting approval
Your pre-approval is valid for 60 days from the date of this letter. Please note that this pre-approval is not a commitment to lend and is subject to change if there are any material changes to your financial situation or credit profile.
We understand that purchasing a high-value property can be a complex process, and we are here to support you every step of the way. If you have any questions or require further assistance, please don’t hesitate to contact us.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 6
Subject: Pre-approval for an Adjustable-Rate Mortgage (ARM)
Dear [Borrower Name],
Thank you for choosing [Lender Name] for your mortgage needs. We are happy to inform you that you have been pre-approved for an adjustable-rate mortgage (ARM) up to $300,000. Your pre-approval is based on the following terms:
1. 5/1 ARM with an initial fixed-rate period of 5 years
2. Initial interest rate of 2.75% (subject to change based on market conditions)
3. Satisfactory completion of all underwriting requirements
4. No significant changes to your credit profile or financial situation
Please keep in mind that after the initial fixed-rate period, your interest rate and monthly payments may adjust annually based on market conditions. This pre-approval is valid for 45 days from the date of this letter and is subject to final underwriting approval.
If you have any questions about your ARM pre-approval or the mortgage process in general, please feel free to reach out to us. We are here to help you make informed decisions about your home financing options.
Best regards,
[Lender Name]
Pre-approval Letter Sample 7
Subject: Pre-approval for a Construction-to-Permanent Loan
Dear [Borrower Name],
We are excited to inform you that you have been pre-approved for a construction-to-permanent loan of up to $500,000. This pre-approval is based on the information you have provided in your mortgage application and is subject to the following conditions:
1. Satisfactory review of your construction plans and budget
2. Verification of your employment, income, and assets
3. Satisfactory appraisal of the completed property
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
Your pre-approval is valid for 180 days from the date of this letter. During this time, we will work closely with you and your builder to ensure a smooth transition from the construction phase to the permanent mortgage.
Building your dream home is an exciting journey, and we are here to support you every step of the way. If you have any questions or require further assistance, please don’t hesitate to contact us.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 8
Subject: Pre-approval for a Conventional Mortgage with Private Mortgage Insurance (PMI)
Dear [Borrower Name],
We are pleased to inform you that you have been pre-approved for a conventional mortgage loan of up to $280,000 with Private Mortgage Insurance (PMI). This pre-approval is based on the information you have provided in your mortgage application and is subject to the following conditions:
1. 5% down payment
2. Satisfactory appraisal of the property you wish to purchase
3. Verification of your employment, income, and assets
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
Please note that because your down payment is less than 20% of the purchase price, you will be required to pay Private Mortgage Insurance (PMI) until your loan-to-value ratio reaches 80%. Your estimated monthly PMI payment is $125, which will be added to your monthly mortgage payment.
This pre-approval is valid for 90 days from the date of this letter. If you have any questions about your pre-approval or the mortgage process in general, please feel free to reach out to us.
Best regards,
[Lender Name]
Pre-approval Letter Sample 9
Subject: Pre-approval for a Conventional Mortgage with a Co-borrower
Dear [Borrower Names],
Congratulations! We are happy to inform you that you have been pre-approved for a conventional mortgage loan up to $450,000 with [Co-borrower Name] as your co-borrower. This pre-approval is based on the combined information you have provided in your mortgage application and is subject to the following conditions:
1. Verification of employment, income, and assets for both borrowers
2. Satisfactory appraisal of the property you wish to purchase
3. No significant changes to either borrower’s credit profile or financial situation
4. Final underwriting approval
Please note that as co-borrowers, you will be equally responsible for the mortgage payments and any other obligations associated with the loan. This pre-approval is valid for 60 days from the date of this letter.
We are here to help you navigate the mortgage process and answer any questions you may have. Please don’t hesitate to contact us if you need further assistance.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 10
Subject: Pre-approval for a Conventional Mortgage with a Gift Fund for Down Payment
Dear [Borrower Name],
We are pleased to inform you that you have been pre-approved for a conventional mortgage loan of up to $375,000 with a gift fund for your down payment. This pre-approval is based on the information you have provided in your mortgage application, including the gift letter and documentation, and is subject to the following conditions:
1. Verification of your employment, income, and assets
2. Verification of the gift funds and the donor’s ability to provide the funds
3. Satisfactory appraisal of the property you wish to purchase
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
Please note that the gift funds must be properly documented and deposited into your account before closing. This pre-approval is valid for 90 days from the date of this letter.
If you have any questions about using gift funds for your down payment or the mortgage process in general, please feel free to reach out to us. We are here to help you achieve your homeownership goals.
Best regards,
[Lender Name]
Pre-approval Letter Sample 11
Subject: Pre-approval for an FHA 203(k) Rehabilitation Loan
Dear [Borrower Name],
We are excited to inform you that you have been pre-approved for an FHA 203(k) Rehabilitation Loan of up to $350,000. This pre-approval is based on the information you have provided in your mortgage application and your plans for renovating the property, subject to the following conditions:
1. Satisfactory appraisal of the property in its current condition and after proposed renovations
2. Verification of your employment, income, and assets
3. Review and approval of your renovation plans and budget
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
Please keep in mind that the total loan amount will include both the purchase price of the property and the cost of the planned renovations. This pre-approval is valid for 120 days from the date of this letter.
Renovating a home can be a complex process, but we are here to guide you through every step of the FHA 203(k) loan process. If you have any questions or require further assistance, please don’t hesitate to contact us.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 12
Subject: Pre-approval for a Conventional Mortgage with Lender-Paid Mortgage Insurance (LPMI)
Dear [Borrower Name],
We are pleased to inform you that you have been pre-approved for a conventional mortgage loan of up to $300,000 with Lender-Paid Mortgage Insurance (LPMI). This pre-approval is based on the information you have provided in your mortgage application and is subject to the following conditions:
1. 10% down payment
2. Satisfactory appraisal of the property you wish to purchase
3. Verification of your employment, income, and assets
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
With LPMI, we will pay the mortgage insurance premium on your behalf, which means you will have a slightly higher interest rate but will not have to make a separate PMI payment each month. Your pre-approval is valid for 60 days from the date of this letter.
If you have any questions about LPMI or the mortgage process in general, please feel free to reach out to us. We are here to help you find the best mortgage solution for your unique situation.
Best regards,
[Lender Name]
Pre-approval Letter Sample 13
Subject: Pre-approval for a Conventional Mortgage with Subordinate Financing
Dear [Borrower Name],
We are happy to inform you that you have been pre-approved for a conventional mortgage loan of up to $400,000 with subordinate financing. This pre-approval is based on the information you have provided in your mortgage application and your plans to obtain a second mortgage or home equity loan, subject to the following conditions:
1. 5% down payment from your funds
2. Satisfactory appraisal of the property you wish to purchase
3. Verification of your employment, income, and assets
4. Review and approval of the subordinate financing terms
5. No significant changes to your credit profile or financial situation
6. Final underwriting approval
Please note that the total combined loan-to-value ratio (CLTV) of your first and second mortgages cannot exceed 95%. This pre-approval is valid for 45 days from the date of this letter.
If you have any questions about using subordinate financing in conjunction with your conventional mortgage or the mortgage process in general, please don’t hesitate to contact us. We are here to guide you through the process and help you make informed decisions about your home financing options.
Sincerely,
[Lender Name]
Pre-approval Letter Sample 14
Subject: Pre-approval for a Conventional Mortgage with an Escrow Waiver
Dear [Borrower Name],
We are pleased to inform you that you have been pre-approved for a conventional mortgage loan of up to $325,000 with an escrow waiver. This pre-approval is based on the information you have provided in your mortgage application and is subject to the following conditions:
1. 20% down payment
2. Satisfactory appraisal of the property you wish to purchase
3. Verification of your employment, income, and assets
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
With an escrow waiver, you will be responsible for paying your property taxes and insurance premiums directly, rather than having them collected and paid by the lender through an escrow account. Please note that an escrow waiver may not be available in all situations and may require a higher down payment or credit score.
This pre-approval is valid for 90 days from the date of this letter. If you have any questions about escrow waivers or the mortgage process in general, please feel free to reach out to us.
Best regards,
[Lender Name]
Pre-approval Letter Sample 15
Subject: Pre-approval for a Portfolio Mortgage Loan
Dear [Borrower Name],
We are excited to inform you that you have been pre-approved for a portfolio mortgage loan up to $750,000. This pre-approval is based on the information you have provided in your mortgage application and is subject to the following conditions:
1. 25% down payment
2. Satisfactory appraisal of the property you wish to purchase
3. Verification of your employment, income, and assets
4. No significant changes to your credit profile or financial situation
5. Final underwriting approval
A portfolio mortgage loan offers more flexibility in terms of underwriting guidelines and loan features compared to traditional mortgage products. This type of loan may be a good option if you have unique financial circumstances or are purchasing a property that doesn’t fit conventional mortgage guidelines.
This pre-approval is valid for 30 days from the date of this letter. If you have any questions about portfolio mortgage loans or the mortgage process in general, please don’t hesitate to contact us. We are here to help you find the best mortgage solution for your specific needs.
Sincerely,
[Lender Name]
Wrapping up 15 Sample Pre-approval Letters for Mortgage
In conclusion, a mortgage pre-approval letter is an essential tool for homebuyers, as it demonstrates to sellers and real estate agents that you are a serious and qualified buyer.
By reviewing these 15 sample pre-approval letters, you can better understand the various types of mortgage products available and the information typically included in a pre-approval letter.
Remember, a pre-approval is not a guarantee of funding, and your final loan approval will depend on several factors, including a satisfactory appraisal of the property, verification of your financial information, and any changes to your credit profile or financial situation.
As you navigate the home-buying process, don’t hesitate to ask questions and seek guidance from your lender.
They are there to help you make informed decisions and find the best mortgage solution for your unique needs and circumstances.
With a clear understanding of the pre-approval process and a pre-approval letter in hand, you’ll be well-prepared to take the next steps in your homebuying journey and make your dream of homeownership a reality.