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Pre-Contract Loan Commitment
When you become pre-approved to purchase a house, you receive a letter from Rate One Mortgage that looks something like this:
Michael P. XXXXXXXX
77 Woodland Drive
XXXXXXXX, XX, XXXXX
Dear Mr. XXXXXXXX:
Congratulations! Your application for a loan to purchase a home has been reviewed and approved subject to the following conditions. This conditional Pre-contract Loan Commitment qualifies you for a monthly payment not to exceed $X,XXX.XX including principal, interest, taxes, home owners insurance, and private mortgage insurance.
The proposed terms for this conventional loan are:
- Purchase price of up to $XXX,XXX.XX with a X% down payment
- 30 Year fixed mortgage
- This approval is valid up to a note rate of X.XX%. Rate maybe locked after receipt of signed purchase agreement.
This loan is based on the following conditions being met and analyzed prior to closing.
- Fully executed purchase agreement with all addendum's.
- Preliminary Title - no delinquent taxes, undisclosed liens, judgments or assessments
- Survey and pest infestation inspection
- Appraisal supporting a value at or higher than purchase price
- Hazard insurance policy for 12 months with paid receipt
- Fully executed mortgage application with disclosures
- No increase in debt or negative changes on credit reports
- No changes in employment or income
- Verification of employment, income and rental history
Verification of assets for down payment, closing costs and reserves of $XX,XXX.XX This approval is good for 55 days. Once all conditions have been met and we receive a clear to fund you could close within five working days.
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