What Should Your Mortgage Preapproval Letter Include?

 Most Seattle-area real estate agents won’t accept an offer on a home without a bona fide preapproval letter. But preapproval letters vary quite a bit in appearance and content from lender to lender — and what’s actually behind the letter matters more than how it looks.

When I provide a preapproval letter, it means I have a complete loan application — typically with the exception of the property address, since the buyer usually hasn’t identified a home yet. It also means the buyer has provided documentation supporting everything on that application, including:

• Income documentation (to confirm the buyer qualifies for the proposed monthly payment)
• Assets (at minimum, enough to cover the down payment and closing costs)
• Credit report and score, which affects both the interest rate offered and what loan programs the buyer qualifies for

If you haven’t provided this kind of documentation to your loan originator, you’re probably prequalified rather than preapproved. 👉 See the full breakdown of prequalified vs. preapproved if you want the complete picture of how the levels differ.

What a Preapproval Letter Should Address

A good preapproval letter should address income, assets, and credit without violating the buyer’s privacy. Sellers and their agents shouldn’t see a buyer’s actual income, asset balances, or credit score — that’s the buyer’s information to share if they choose to, not something that belongs in a letter presented with an offer. Instead, the letter should simply confirm that these items have been reviewed and are acceptable. Sometimes a buyer may want to include more information, such as their credit score, in order provide more strength to their letter as a competitive advantage.

For example, I might include something like this in a preapproval letter:

This preapproval is due to the buyer’s job stability and strong credit. Funds to close this transaction are from personal savings and a seller contribution.

That one sentence addresses income, assets, and credit — without disclosing any of the specifics.

Program, Sales Price, and Loan Amount

A preapproval letter should also include the loan program type, sales price, and loan amount. Occasionally a real estate agent will ask that the sales price be left blank — this is possible if the buyer has substantial cash reserves, and I’m happy to prepare several preapproval letters at staggered price points as long as the down payment and closing costs are documented at each level.

You may also see a total qualifying mortgage payment on a preapproval letter. This matters because buyers qualify based on a payment, not just a sales price — if property taxes or homeowners insurance come in higher than estimated, or rates move before you’re under contract, your qualifying payment can shift. Whether or not your loan originator includes the qualifying payment on the letter itself, it’s worth asking what that number is before you start touring homes.

Conditions and Expiration

Any conditions on the loan approval should appear on the preapproval letter. Standard conditions typically include:

• Satisfactory purchase and sale agreement
• Satisfactory title commitment
• Subject to appraisal
• Subject to no material changes in the buyer’s financial situation (employment, debts, or assets) from what was disclosed on the application

Preapproval letters also generally have a shelf life — credit reports and supporting documentation age out. If your preapproval has expired, it’s typically a quick update: your loan originator will just need current paystubs, bank statements, or similar documents to refresh it.

The letter should be dated and signed by whoever prepared it, with contact information included so the listing agent can reach them directly.

Without a Property Address

Because a Loan Estimate is tied to a specific transaction, buyers who are preapproved before identifying a home generally won’t receive a formal Loan Estimate at the preapproval stage — that document comes once you’re under contract on a specific property. Some lenders also provide a Total Cost Analysis alongside your preapproval — a side-by-side comparison of different loan strategies, rate and pricing options, so you can see the trade-offs before you’re ready to make an offer, rather than working from a single rate quote. 👉 Why You Need a Total Cost Analysis, Not Just a Rate Quote

If you’re shopping for a home anywhere in Washington State, I’m happy to help you get preapproved — and to make sure your preapproval letter actually reflects the work behind it.

 

Last reviewed: July 2026