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What is a mortgage commitment letter?

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Quick Answer

A mortgage commitment letter is a statement from a lender to the borrower which confirms that the borrower has secured the loan and can now go ahead with closing, according to The Nest. The letter highlights the terms of the mortgage, as well as any conditions the borrower needs to meet prior to closing the loan.

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Full Answer

A mortgage commitment letter is usually issued after the borrower has successfully completed the application process for the loan. After getting the letter, the borrower needs to sign it and return it to the lender, as noted by The Nest. To expedite the process of getting the letter, the borrower should ensure that they have provided all the relevant paperwork and their credit history is good. All conditions spelled out in the letter, such as insurance requirements, must be satisfied before closing the sale.

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