Loan Commitment Letter
A loan commitment letter is a document provided by a lender attesting that it intends to fund a mortgage loan for the specific homebuying transaction a borrower is involved in. Usually, a loan commitment letter does not come without some strings attached; often, a commitment letter is issued before an appraisal is complete and thus an appraisal amount at or above the purchase price is listed as a condition.
Additionally, lenders generally bar any material change in the property, transaction, or any part of the borrower(s)' personal financial situation as a condition of the commitment letter.
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