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Mortgage Glossary

Commitment Letter

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A commitment letter is a lender's formal written promise to fund a mortgage, issued after underwriting approves the loan.

What Commitment Letter means

Stronger than a pre-approval, the commitment letter confirms the loan is approved subject to final conditions like a clear title and current pay stubs. Sellers view it as solid assurance the deal will close.

Florida example

A buyer in Naples presented a commitment letter to the seller, who accepted the offer over a competing buyer who had only a pre-qualification.

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Related Mortgage Terms

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