Buying a home is an exciting milestone, but the process of securing a mortgage can be daunting.
One of the most important steps in the home-buying journey is obtaining a pre-approval letter from a lender.
This letter demonstrates to sellers and real estate agents that you are a serious buyer with the financial means to purchase a home.
Sample Pre-Approval Letters for Mortgage
But what exactly does a pre-approval letter entail, and how can you make sure it’s strong enough to help you stand out in a competitive housing market?
In this article, we’ll explore 15 sample pre-approval letters for mortgages, each tailored to a specific scenario.
Whether you’re a first-time homebuyer, a self-employed individual, or someone with a unique financial situation, these templates will provide you with the guidance you need to secure a compelling pre-approval letter and take the first step toward homeownership.
Letter One: Pre-Approval for First-Time Homebuyer
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
Congratulations! Based on the information you have provided, including your credit report, income, and assets, you have been pre-approved for a mortgage loan to purchase a home. The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Two: Pre-Approval for Self-Employed Borrower
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We are pleased to inform you that based on the information you have provided, including your tax returns, bank statements, and other financial documents, you have been pre-approved for a mortgage loan to purchase a home. As a self-employed individual, we understand that your income may fluctuate from year to year. However, we have determined that you have the financial stability and means to qualify for a mortgage.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Three: Pre-Approval for Borrower with High Debt-to-Income Ratio
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and debts. While your debt-to-income ratio is higher than our typical requirements, we have determined that you have the financial means to qualify for a mortgage loan based on your stable income and excellent credit history.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Four: Pre-Approval for Borrower with Low Credit Score
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. Although your credit score is lower than our typical requirements, we have determined that you have the financial means to qualify for a mortgage loan based on your stable income and sufficient assets.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Five: Pre-Approval for Borrower with Significant Assets
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We are pleased to inform you that based on the information you have provided, including your credit report, income, and substantial assets, you have been pre-approved for a mortgage loan to purchase a home. Your strong financial portfolio and liquidity have demonstrated your ability to afford the mortgage payments and maintain financial stability.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Six: Pre-Approval for Borrower with Co-Signer
Subject: Pre-Approval Letter for [Borrower Name] with Co-Signer
Dear [Borrower Name] and [Co-Signer Name],
We have reviewed your joint mortgage application and financial information, including your credit reports, income, and assets. Based on the combined financial strength of both the primary borrower and co-signer, we are pleased to inform you that you have been pre-approved for a mortgage loan to purchase a home.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Seven: Pre-Approval for Borrower with Gift Funds
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We acknowledge that a portion of your down payment will be coming from gift funds provided by [Donor Name]. We have verified the source and availability of these funds and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Gift Funds: [Amount] – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Eight: Pre-Approval for Borrower with Rental Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have taken into consideration the rental income you receive from your investment properties and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Nine: Pre-Approval for Borrower with Commission-Based Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. As a commission-based employee, we understand that your income may vary from month to month. However, based on your average earnings over the past two years and your stable employment history, we have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Ten: Pre-Approval for Borrower with Bonus Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have taken into consideration the bonus income you receive as part of your compensation package and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Eleven: Pre-Approval for Borrower with Overtime Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have considered the overtime income you earn in addition to your base salary and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Twelve: Pre-Approval for Borrower with Part-Time Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have taken into account the income you earn from your part-time employment and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Thirteen: Pre-Approval for Borrower with Child Support Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have included the child support income you receive as part of your overall income assessment and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Fourteen: Pre-Approval for Borrower with Alimony Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have considered the alimony income you receive as part of your total income and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Letter Fifteen: Pre-Approval for Borrower with Disability Income
Subject: Pre-Approval Letter for [Borrower Name]
Dear [Borrower Name],
We have reviewed your mortgage application and financial information, including your credit report, income, and assets. We have taken into account the disability income you receive and have determined that you have the financial means to qualify for a mortgage loan.
The details of your pre-approval are as follows:
– Maximum Purchase Price: [Amount] – Loan Type: [Fixed-Rate/Adjustable-Rate/FHA/VA/USDA] – Down Payment: [Percentage] of the purchase price – Interest Rate: [Rate]%
This pre-approval is valid for [Number] days from the date of this letter. Please note that this pre-approval is subject to a satisfactory appraisal of the property and a final underwriting review.
Sincerely,
[Lender Name]
Conclusion
These 15 sample pre-approval letters for mortgages demonstrate the wide range of financial situations that lenders may encounter when assessing a borrower’s eligibility for a home loan.
By tailoring each letter to the specific circumstances of the borrower, lenders can provide a clear and compelling pre-approval that instills confidence in both the borrower and the seller.
If you’re a prospective homebuyer, obtaining a strong pre-approval letter is a crucial first step in your journey toward homeownership.
By working closely with your lender and providing them with all the necessary financial information, you can increase your chances of securing a pre-approval that will help you stand out in a competitive housing market and bring you one step closer to your dream home.