What Are Some Elements of a Loan Pre-Approval Letter?

What Are Some Elements of a Loan Pre-Approval Letter?

A pre-approval letter includes the type of loan, amount of the loan and loan term for which the borrower is pre-approved, according to CHL Mortgage. The borrower's total monthly payment, if approved, is also typically listed.

The address of the property for which the borrower is seeking pre-approval is also included, if applicable. No address is listed if the borrower has not yet chosen a home to purchase. Since a pre-approval is not a commitment by the lender, the pre-approval letter notes that the terms listed are subject to final loan approval, including a documentation and underwriting review, according to CHL Mortgage.