Mortgage Proposal Letter

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A mortgage is a system by which a debtor borrows money from a bank or some other moneylender and as security the bank keeps the title of the property purchased until the debt is paid off with interest. It is a fairly common way to buy a house for residence or as an investment.

In order to get a mortgage approved, a proposal letter is written. It is a formal letter in which the debtor introduces himself and gives the details that he feels qualify him for the debt. He/she may also give the names and references of some guarantors who would be people who know him well and are willing to guarantee that the debtor is a responsible person and is sure to return the loan in a timely manner.

The mortgage would be approved or rejected on the basis of this letter so it must be written very carefully. The language used should be formal but courteous and the applicant must ensure that they are adding all the points that go in their favor and which would help in convincing the bank to accept their mortgage proposal.

However, unnecessary information should be avoided and the proposal should be kept short and precise. All the information given should be accurate and current.

Also, the letter must be proofread before sending. Grammatical errors and spelling mistakes would damage the applicant’s position and increase the chances of rejection of their application.

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Subject: Mortgage Proposal Letter

I am an account holder in your bank for the last five years. I have two accounts in your [name] branch. One is my salary account [account number] and the other one is a savings account [account number]. The reason for writing this letter is that I want to draw some loan from your bank.

As you can see that I have good credit and a stable monthly income. I would be able to pay the loan back timely. I am also attaching the documents of my house which I intend to take out a mortgage against. It’s a new property and it is situated in [address]. Its market value is around [number] which is more than the amount of the loan I am taking out.

I am attaching the contact details of Mr [name] who is my employer of fifteen years and knows me very well. He has agreed to be my guarantor.

The second guarantor would be Mr [name] who is a doctor by profession and my neighbor. Please go through my credentials and approve my loan as I need the amount urgently.

Looking forward to your positive response.

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I am an account holder in your prestigious bank since [year name]. I want to take a loan for buying a home. I have gone through your mortgage plans and I feel that plan [name] suits me the best.

I understand the terms of the lease and feel that the time period, amount, and other details of this plan would be most appropriate for me. You have my account information so you can verify that I have a stable income. I am attaching the plans for the house I am aiming to buy. It is a two-bedroom apartment in [name of the building].

I am a salaried person and it is not possible for me to buy a house without drawing a loan but I want to assure you that I will make all my payments on time and you will find me a very cooperative and responsible debtor.

I am attaching the testimonial my employer was kind enough to write for me. Also, I am attaching the contact information of my guarantors. As you can see from their credentials, these are respectable members of the community and they are willing to become my guarantors.

Please approve my mortgage proposal and process my application at the earliest as the apartment I intend to buy is in high demand due to its location and the amenities of the building. If my mortgage processing takes too long, I fear that I would end up losing it but I am sure that you will process my mortgage proposal on priority and I would be able to confirm my purchase with the realtor.

Looking forward to your positive response.

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