Document background
A Mortgage Letter from Bank is a crucial document in the Nigerian property financing landscape, serving as the bank's formal commitment to provide mortgage funding. This document is typically issued after a successful mortgage application and preliminary approval process, but before the final mortgage agreement is executed. The letter outlines the key terms and conditions of the proposed mortgage, including the approved amount, interest rate, tenure, and any specific requirements that must be satisfied. Under Nigerian banking regulations, particularly the Central Bank of Nigeria Act and Federal Mortgage Bank of Nigeria Act, this document must contain certain mandatory information and disclosures. The letter is commonly used in property transactions as proof of funding availability and is often required by property sellers and their legal representatives as evidence of the buyer's ability to complete the purchase.
