A good mortgage proposal template gives the borrower a clear picture of your recommended loan options, what each costs, what you need from them, and what happens next. It does that without promising an approval and without posing as the official Loan Estimate. Below is the section-by-section layout we recommend, the compliance guardrails, and a way to stop rebuilding the document by hand for every borrower.
We built 1 Solution as a platform for independent brokers, and proposals are one of the places where fragmented tools hurt most. A Word file here, a rate sheet there, a PDF emailed with no record of who opened it. The template below works in any tool. Then we show what changes when it lives inside your system.
TL;DR
- A broker proposal is a recommendation and an illustration. The Loan Estimate is the official disclosure, and your proposal should say so plainly.
- Build it in blocks: borrower and scenario, recommended options, cost breakdown, risks, document checklist, next steps, and your licensing details.
- Never imply approval. Eligibility depends on credit, income, assets, collateral and more, and the appraisal comes later.
- State rules on advertising and company identification differ, so use configurable disclosure blocks instead of one fixed footer.
- The faster you can pull live pricing and borrower data into the proposal, the fewer errors and the quicker the borrower says yes.
Table of Contents
- What a mortgage proposal is, and what it is not
- The sections every broker proposal needs
- Why one footer will not work nationally
- What to keep off the proposal
- A worked example
- Where static templates break down
- Perspective: what we learned from the processing desk
- Sending the proposal from inside your system
- A quick checklist before you send
- FAQ
- Sources
What a mortgage proposal is, and what it is not
A proposal is the document you send after the first real conversation and before (or alongside) a formal application. It turns a call into something the borrower can read twice, show a spouse, and compare. It covers your recommended program, the scenario you priced, the estimated payment, and the path to closing.
It is not a Loan Estimate. The CFPB describes the Loan Estimate as the standardized disclosure showing loan amount, interest rate, monthly payment, closing costs, taxes, insurance and how payments could change, and the rules require it within three business days of application. The Closing Disclosure follows later, at least three business days before closing. Your proposal sits before all of that, so label it clearly as an illustration and tell the borrower to rely on the official disclosures for binding terms and costs.
That distinction protects you and it helps the borrower. If your proposal looks and reads like a disclosure, you invite confusion about which numbers count.
The sections every broker proposal needs
Most templates you will find online are generic business proposals with a mortgage logo on top. A mortgage proposal has different jobs. Here is the structure we would use.
1. Cover and borrower snapshot
Keep it short: borrower name or names, property address (or target area if they have not found a home), date, and your name and contact details. Add a one-line scenario summary, for example purchase or refinance, estimated price or value, down payment or cash-out goal, and occupancy.
2. Your understanding of the goal
One short paragraph in the borrower's own terms. "You want a payment under a number you named, with room to keep cash reserves after closing" does more for trust than any design element. It also proves you listened, and it gives the borrower a chance to correct you before you price the wrong thing.
3. Recommended options
This is the core. Present two or three options rather than one or ten. A table works best:
| Option A | Option B | Option C | |
|---|---|---|---|
| Loan type | Conventional fixed | FHA fixed | Adjustable |
| Loan amount | Scenario figure | Scenario figure | Scenario figure |
| Rate and APR | Priced today | Priced today | Priced today |
| Estimated principal and interest | Calculated | Calculated | Calculated |
| Estimated taxes, insurance, mortgage insurance | Calculated | Calculated | Calculated |
| Estimated cash to close | Calculated | Calculated | Calculated |
| Why we suggest it | One sentence | One sentence | One sentence |
Fill the table from a live pricing source on the day you send it, and put the pricing date on the page. Regulation Z already tells creditors that an advertisement stating specific credit terms may state only terms the creditor actually is or will be arranging or offering. Whether your proposal counts as an advertisement depends on how it is used, so ask your compliance advisor. Either way, the safe habit is the same: never show a rate you cannot deliver.
4. Cost breakdown in plain language
Borrowers compare. The CFPB's disclosure design is built around that idea: rate, payment, loan amount, closing costs, taxes and insurance, and how terms may change. Mirror that logic without copying the form. Group costs into lender and broker charges, third-party services, prepaids and escrow, and any credits. Explain each group in a sentence. Do not hide your compensation. A borrower who sees it clearly is a borrower who trusts the rest of the page.
5. Risks and what could change
This section separates a professional proposal from a sales flyer. Say that rates move until lock, that the appraisal may come in low, that income and credit are verified later, and that a change in the scenario changes the numbers. If an option has an adjustable rate or mortgage insurance that does not drop off, say that too, in a sentence or two.
6. Document checklist
The checklist should anticipate underwriting, not ask for "financial documents." Freddie Mac's borrower guidance lists recent pay stubs, W-2s, bank and investment statements, statements for outstanding debts, tax returns and proof of supplemental income, and it advises providing every page of every requested document. Tailor the list to the file: a self-employed borrower needs a different list than a salaried one, and a refinance differs from a purchase.
Give each item a due date and a way to upload it. A checklist with no delivery path becomes a pile of email attachments.
7. Next steps and timeline
Three to five numbered steps with rough timing: complete the application, receive the Loan Estimate, lock the rate if you choose to, order the appraisal, clear conditions, close. Name who does what. Include a single call to action, such as "Complete your application here," and make it one click.
8. Licensing and disclosures
Put your company name, your NMLS ID and the originator's NMLS ID, license details, address and contact information in a dedicated block. More on why below. Add the statement that this is not a commitment to lend and not a Loan Estimate.
Why one footer will not work nationally
If you are licensed in more than one state, a single static footer is a risk. Requirements differ by state and by whether the document is advice, an advertisement, a solicitation or an application-related disclosure.
Two examples show the spread. Nevada's advertisement submission form calls for the licensed company or originator name, licensed address, telephone number and license or registry identifier in applicable advertising. Texas rules for mortgage companies require the company's name and NMLS ID, its website address if it has one, and the sponsored originator's name and NMLS ID in covered advertising. The parallel rule for mortgage bankers is at 7 Tex. Admin. Code § 57.203.
The practical fix is to build the disclosure area as a set of blocks that change with the property state and the loan officer. Your template stays one document. The legal text swaps in automatically. We cover the broader picture in our guide to mortgage regulatory compliance for brokers. This is general information, not legal advice. Have your compliance officer or counsel review the final language for each state you operate in.
What to keep off the proposal
- Any promise of approval. Freddie Mac's guidance shows eligibility turns on capacity, capital, collateral, credit, housing expense ratio and debt-to-income ratio, and the appraisal comes after. A proposal that says "you're approved" is a liability.
- Rates without a date or scenario. A rate with no assumptions behind it is a hook, not a quote.
- Guarantees about closing dates. Give a target, not a guarantee.
- Copy from the official forms. Do not imitate the Loan Estimate layout. Keep your document visibly different.
- Clutter. Every extra page lowers the odds that the borrower reads the pages that matter.
A worked example
Take a purchase scenario. A borrower is buying a primary residence and wants to compare a 30-year conventional fixed loan with an FHA option. You pull both prices on the same morning, drop them into the options table, and list the estimated monthly payment for each, with taxes, insurance and mortgage insurance separated out. Under the table you add two sentences: why you lean toward one option, and what would make you change your mind, for example a higher credit score or a larger down payment.
The checklist then lists pay stubs for the last 30 days, two years of W-2s, two months of bank statements and a signed authorization. Each item has an upload button. The next-steps block says that once the application is complete, the official Loan Estimate arrives within three business days. The borrower can read it in five minutes and knows what to do.
None of that is complicated. It is just consistent, and consistency is what most brokers lack when proposals are built from scratch each time. For more variations on layout and tone, see our mortgage proposal customization examples.
Where static templates break down
A downloadable template solves the layout problem. It does not solve the data problem. Look at what happens in a typical brokerage:
- The loan officer prices in one tool.
- They retype the numbers into a document.
- They email the document, and replies scatter across inboxes and text threads.
- Documents come back in pieces, by email, text and photo.
- Someone re-keys all of it into the loan origination system.
Every handoff is a chance for a typo, a stale rate or a missing page. Freddie Mac's quality control checklist is a reminder of how much a complete loan file needs: the signed application, AUS findings, appraisal, credit documentation, income and funds verification, insurance and tax evidence, and more, depending on the loan. The requirements vary by loan type, but the lesson holds. Completeness matters more than visual polish, and the proposal is where completeness starts.
The fix is to connect the steps. When pricing, proposal, borrower portal, e-signature, document storage and loan status share one record, the numbers in the proposal are the numbers in the file. We wrote about how this plays out day to day in how to centralize client correspondence and in our look at new mortgage office workflow design.
Perspective: what we learned from the processing desk
Our founder, Omar Khamisa, has spent over 20 years in mortgage operations as a processor, underwriter, loan originator and systems consultant. The pattern he saw again and again is that proposals are treated as marketing, when they are really the first page of the loan file.
We think that is backwards. A proposal that lists the right documents up front saves a processor days. A proposal that is honest about risk saves a loan officer from an awkward conversation at the appraisal stage. A proposal that is built from live pricing does not embarrass anyone at lock.
We also think brokers should control the template. Many platforms are designed around banks and direct lenders, so the proposal looks like the institution's idea of a document, not yours. We built 1 Solution, self-funded and independent, so a broker can shape the proposal, the portal and the workflow around how an independent shop actually runs. Your brand, your disclosures, your process.
— Omar Khamisa
Sending the proposal from inside your system
If you want the template above without the copy and paste, 1 Solution's cloud platform brings pricing, CRM, borrower portal, e-signature, LOS and compliance tools together. It includes a product pricing engine, rate comparison, and proposal and pre-approval generation, plus email, SMS, chat, voice and video in the same place. Onboarding is personalized, so you are not left to figure out the setup alone.
That means the options table pulls from your pricing, the checklist feeds the borrower portal, and the signed documents land in the file. If you want to see how it would look for your team, start at 1smtg.com. To see what a borrower sees, take a look at the customer portal. For a deeper look at the portal side, read about borrower portal features that cut costs.
A quick checklist before you send
- Is the pricing dated today and matched to the scenario?
- Does the document say it is an illustration and not a Loan Estimate?
- Are the company and originator NMLS IDs and state-required details in place?
- Does the checklist match this borrower's income type and loan purpose?
- Is there one clear next step, with a link that works?
- Has the proposal been saved to the loan record, so the file shows what you told the borrower?
FAQ
Is a mortgage proposal the same as a Loan Estimate?
No. The Loan Estimate is the standardized federal disclosure, due within three business days of application. A proposal is your own recommendation and illustration, sent earlier or alongside it. Label it that way and point the borrower to the official disclosure for binding terms.
Do I need a different template for each state?
You need one template with state-specific disclosure blocks. Rules on company name, NMLS IDs, license information and advertising review differ by state, as the Nevada and Texas examples show. Have compliance review the wording for each state where you are licensed.
How long should a mortgage proposal be?
Two to four pages is enough for most files. Lead with the options table and the next steps, and keep the checklist and disclosures after them. If a borrower needs more detail, a short call does it better than extra pages.
Can I put a rate on the proposal?
Yes, if it is a rate you can actually offer for that scenario, dated and clearly tied to its assumptions. Regulation Z's advertising rule bars stating credit terms that are not actually available. Talk to your compliance advisor about when your proposal counts as an advertisement.
What documents should the proposal ask the borrower for?
Ask for what underwriting will need for that file. Typical items include pay stubs, W-2s, tax returns, bank and investment statements, debt statements and proof of other income, as Freddie Mac's guidance lists. Add property and funds documentation as the scenario requires.
Sources
- CFPB: Know Before You Owe, proposed mortgage disclosure forms
- Freddie Mac My Home: Completing your loan application
- Freddie Mac: Quality Control Review Documentation Checklist
- Nevada Division of Mortgage Lending: Advertisement Submission Form
- 7 Tex. Admin. Code § 56.203, Advertising
- 7 Tex. Admin. Code § 57.203, Advertising
- CFPB Regulation Z, § 1026.24 Advertising