lender letter

What precautions you must take while getting a lender letter?

Many a time you may like a property so much so that you want to buy it but the problem is the finance. There are two problems that the buyers face while choosing to buy a property

1. The seller want to sell off their property right away and the buyer cannot arrange for the finance instantly because loan sanctioning takes a lot of time
2. There are many others who would like to buy the same property and can afford instant money. This may lead to the opportunity getting out of hands.

This problem can be solved by getting a lender letter from the bank or anyone who is ready to lend you the money in future if you close the deal.

What is lender letter?

This is a letter from the party who is ready to lend you the required money if you fulfil the criteria that are required to be fulfilled. This letter is not the approval of loan but a letter that shows that there are higher chances of your loan getting approved depending on the results of further investigations.

One must ensure that your lender letter is issued to you after the required back ground check. This has many advantages

• You will become sure of the loan approval should you pick a property to buy
• If your lender refuses to give you a letter you may try other options as well as lenders
• You will save time when you are closing the deal

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Sample Template Preview

Ira Investor
PO Box 1172
Killeen , TX 76541

April 8, 2000

Norwest Bank
1400 Main Street
Dallas, TX 37463

                                                            Re:     Loan # 3345-445-432B
                                                                                 Prop Address:     123 Main Street
                                                                                                         Denver, CO 80231

Dear Sirs/Ladies:

Enclosed please find an authorization to release information with regard to the above referenced loan.

Please keep this letter and authorization in your file.  Pursuant to the authorization, we request that you send us duplicates of all notices, particularly assignments, tax notices, late notices and/or default notices under said loan.

Thank you for your cooperation.

Sincerely,

Ira Investor

Enc.