How to Use a Letter of Intent in Real Estate Deals

Most first-time buyers think the bank has the final say.

If you don’t have a pre-approval letter, they tell you to wait. To save. To fix your credit.

But there’s a tool almost no one talks about — a Letter of Intent (LOI). And once you understand how it works, you’ll never see the homebuying process the same way again.

This post will walk you through how to use an LOI to open doors, even if the bank says no. Plus, we’ll give you a free LOI template and access to a full training replay where we taught this strategy live.

What Is a Letter of Intent — and Why Most Buyers Have Never Been Told About It

A Letter of Intent is a simple document that expresses your desire to purchase a home, directly to the seller. Watch the Zoom Replay Here

Unlike a pre-approval letter from a bank, an LOI isn’t about your credit score or debt-to-income ratio. It’s about your intent, your situation, and your plan.

Think of it as a buyer’s introduction letter — but with more structure and clarity. It doesn’t replace a contract, but it starts the conversation with the seller.

It works especially well in:

• Off-market or for-sale-by-owner situations

• When you have non-traditional financing (private, family, etc.)

• When you're early in your process and want to express serious interest

"I didn't even know you could do this without a lender involved. That Zoom changed everything for me."

How to Use a Letter of Intent Without Traditional Bank Approval

Here’s the key: You don’t need to be pre-approved to start building trust with a seller.

When done right, your LOI can:

• Explain your intent to purchase

• Show your readiness and seriousness

• Outline how you plan to fund the purchase (even if non-bank)

• Communicate your timeline and any flexibility

We’ve seen buyers use LOIs to:

• Start conversations with sellers before a home hits the market

• Compete against cash buyers by being transparent and personal

• Create direct negotiations without the gatekeeping of lenders

Want to see how it works?

👉 Click here to get the replay

Letter of Intent Format: What to Include (With Examples)

A good LOI has 3 main parts:

1. Purpose
Explain why you’re writing, and which property you’re interested in.

2. Clarity
Be direct and respectful. State your intended purchase price or range, and how you intend to fund it.

3. Professionalism
Use proper formatting, correct grammar, and a courteous tone. Make it easy to read and understand.

Example Snippet:

Dear [Seller Name],
I'm writing to express my intent to purchase your property at [address]. As a first-time home buyer, this home represents more than a transaction — it’s the next step in building my future.
I am prepared to move forward with a purchase offer of [$X], using [source of funding]. I’m open to discussing terms that work well for both of us.

Want the full template? You can download it and get the replay below.

Why This Works (Even If You Have Less-Than-Perfect Credit)

When we taught this on Zoom, 100% of attendees said they had never been told this was even an option.

Because most of the industry leads with what you don’t have:

• Not enough credit

• Not enough savings

• Not enough time

But your LOI leads with what you do have:

• Clarity

• Intention

• A plan

It reframes you from someone hoping to qualify to someone worth partnering with.

"The LOI helped me get a response from an owner I thought would never consider my offer. It gave me confidence, even before I had all my finances lined up."

Get the Letter Template + Replay: Free Access

We taught this strategy live on Zoom — walking through:

• What an LOI really is (and isn't)

• How to structure one to get read

• Why it works for buyers without bank approval

Want to see how it works?

👉 Click here to get the replay + free template

Don't wait for a lender to say you're ready. Start the conversation yourself.

You don't need to be perfect to begin. You just need a clear letter, a real plan, and the courage to make the first move.

This is your story. Tell it well.

FAQ

1. “Can I buy a home without getting bank pre-approval?”

Yes — if you're working directly with a seller, you can use a Letter of Intent (LOI) instead of waiting on a bank’s yes. It shows your seriousness and plan upfront, even without traditional financing.

2. “What is a letter of intent in real estate?”

A Letter of Intent is a simple document that tells a seller you’re interested in buying their home. It outlines your offer, your funding plan, and your timeline — even if you’re not approved by a bank yet.

3. “How do I make an offer on a house if I don’t have a pre-approval letter?”

You can write a Letter of Intent. It lets the seller know you’re ready to talk, even before you qualify for financing. It’s clear, respectful, and often gets your offer taken seriously.

4. “Is there a way to buy a house with bad credit?”

Yes. A Letter of Intent shifts the focus from your credit score to your plan, your intent, and your ability to communicate directly with a seller. It’s a real alternative that works — even with less-than-perfect credit.

5. “What do I put in a letter of intent to buy a house?”

Keep it simple: share why you want the home, how you plan to pay for it, and when you’re ready to move. Use a respectful tone and focus on clarity — not just formality.

6. “Can a letter of intent replace a pre-approval letter?”

Not officially — but it can open doors early in the process. Sellers often respond positively to buyers who take initiative and show a real plan, even before bank approval.

7. “What if the house I want isn’t listed with an agent?”

That’s a great time to use a Letter of Intent. It lets you speak directly to the owner — especially for off-market or for-sale-by-owner homes — and start the conversation on your terms.

8. “Where can I find a letter of intent template for buying a home?”

Watch our full training replay at:
👉 letterofintent.worksmartservicesgroup.com/webinar-registration

9. “Why hasn’t anyone told me about using a letter of intent?”

Because most systems are built to keep buyers in the bank-first loop. But that doesn’t mean it’s your only path. The LOI strategy empowers you to take the first step with confidence — on your terms.

10. “How can I learn more about using a letter of intent to buy a home?”

We hosted a live Zoom training where we explained everything — from structure to strategy. You can get the full replay and letter template by clicking the link in our bio or visiting the site.