Home Loan Approval Letter

HOME LOAN APPROVAL LETTER

Lender Name:

Borrower Name(s):

Date Issued:

Recitals

WHEREAS, Borrower Name: has applied to Lender for financing to purchase or refinance the real property located at Property Address: ;

WHEREAS, Lender has completed a preliminary underwriting review and is issuing this conditional approval for a loan in the principal amount of Approved Loan Amount: pursuant to the terms set forth herein; and

WHEREAS, this letter documents Lender's conditional approval and the conditions that must be satisfied prior to final funding and disbursement.

Scope of Loan Approval

Payment Terms

Loan Type:    Interest Rate (annual):

Term (years):    Monthly Principal & Interest Estimate:

Late Fee (if payment not made when due):    Escrow Account Required:

Term and Termination

Approval Effective Date:    Approval Expiration Date:

This conditional approval will terminate automatically upon the earlier of: (a) expiration of the Approval Expiration Date; (b) material adverse change in Borrower's financial condition or property condition; or (c) failure to satisfy the Conditions Precedent within the notice period. Notice of termination shall be effective upon written notice to Borrower.

Required Notice Period for Cure of Conditions (days):

Conditions Precedent to Funding

The following conditions must be satisfied to Lender's reasonable satisfaction prior to closing and funding:

Satisfactory appraisal of the Property

Clear and insurable title, including required endorsements

Verification of income and employment

Receipt of hazard and (if required) flood insurance binder naming Lender as loss payee

No material adverse change in Borrower's financial condition or the Property

Confidentiality

All non-public information provided by Borrower to Lender in connection with this approval shall be treated as confidential and used solely for purposes of underwriting and closing the loan. Lender may disclose such information to affiliates, title companies, insurers, appraisers and agents as necessary to effectuate the transaction, provided such parties are bound by confidentiality obligations no less protective than those herein.

Governing Law

This letter and any dispute arising out of or relating to it shall be governed by and construed in accordance with the laws of the State of: without regard to choice-of-law principles.

Entire Agreement

This letter constitutes the entire agreement between Lender and Borrower with respect to the matters described herein and supersedes all prior oral or written communications concerning the subject matter. Any amendment or waiver must be in writing and signed by both parties.

Acknowledgment

Borrower acknowledges receipt of this conditional approval and agrees to cooperate promptly in satisfying the Conditions Precedent. Borrower understands that this document is not a commitment to lend until all conditions are satisfied and a final loan agreement and closing documents are executed.

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