Document background
The Offer Letter For Mortgage is a crucial document in Saudi Arabia's real estate financing process, issued by licensed financial institutions to prospective borrowers who have successfully completed the initial mortgage application process. It represents the bank's formal commitment to provide Shariah-compliant property financing, subject to specified terms and conditions. The document is designed to comply with Saudi Central Bank (SAMA) regulations, the Real Estate Mortgage Law, and Islamic finance principles, making it unique to the Saudi Arabian jurisdiction. It typically follows a successful property evaluation and preliminary credit assessment, containing detailed information about the financing amount, profit rate, tenure, payment schedule, and various fees and charges. This document serves as the foundation for the subsequent mortgage agreement and is used when a financial institution has approved a customer's mortgage application but needs to formally communicate the approved terms before proceeding with the final documentation.
