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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:

Date: XX/XX/XXXX

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:

  1. Purchase price of up to $XXX,XXX.XX with a X% down payment
  2. 30 Year fixed mortgage
  3. 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.

  1. Fully executed purchase agreement with all addendum's.
  2. Preliminary Title - no delinquent taxes, undisclosed liens, judgments or assessments
  3. Survey and pest infestation inspection
  4. Appraisal supporting a value at or higher than purchase price
  5. Hazard insurance policy for 12 months with paid receipt
  6. Fully executed mortgage application with disclosures
  7. No increase in debt or negative changes on credit reports
  8. No changes in employment or income
  9. 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.

Sincerely,



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