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A Letter of Intent for Mortgage is commonly used in German real estate transactions as an initial step in the mortgage application process. This document is typically prepared when a prospective borrower has identified a specific property and wishes to formally communicate their intention to seek mortgage financing from a particular bank. It serves as a preliminary framework for negotiations, containing essential information about the proposed property purchase, intended loan amount, preferred repayment terms, and the borrower's financial position. While not legally binding for the final mortgage terms, it helps establish the serious intent of the borrower and often facilitates the formal application process. The document must align with German banking regulations and property laws, particularly considering the requirements of the Bürgerliches Gesetzbuch (BGB) and Kreditwesengesetz (KWG).

1. Letterhead and Date: Sender's details, recipient's details, and date of the letter in proper German business letter format

2. Subject Line: Clear indication that this is a Letter of Intent for Mortgage (Absichtserklärung zur Hypothekenaufnahme)

3. Opening Salutation: Formal greeting to the recipient

4. Introduction: Brief introduction of the sender and the purpose of the letter

5. Property Details: Specific details of the property for which the mortgage is intended, including address and land register information

6. Financial Terms: Proposed key financial terms including desired loan amount, intended down payment, and preferred repayment period

7. Borrower Information: Key details about the borrower including employment status and financial capacity

8. Timeline: Proposed timeline for finalizing the mortgage agreement

9. Closing Statement: Statement of serious intent and request for next steps

10. Signature Block: Space for signature, name, and title of the sender