Document background
The Pre-Approval Letter For Mortgage Loan is a crucial document in Pakistan's property financing process, issued by banks and financial institutions after conducting initial assessment of a potential borrower's creditworthiness. This document is typically used when individuals are beginning their property search and need to demonstrate their borrowing capacity to sellers and real estate agents. It includes details about the maximum loan amount the borrower may qualify for, estimated interest rates, and loan terms, subject to final verification and approval. The letter follows Pakistani banking regulations and State Bank of Pakistan guidelines, particularly adhering to the Banking Companies Ordinance, 1962 and relevant Prudential Regulations for Consumer Financing. While not a guarantee of final loan approval, it serves as a formal indication of the bank's willingness to proceed with the mortgage application subject to meeting specified conditions.
