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In this video, the host introduces the term "commitment letter" in the context of real estate. A commitment letter is a formal offer from a lender detailing the mortgage amount, interest rate, and repayment terms. It is conditional, meaning the lender will fund the mortgage if certain conditions are met within a specific time frame. Common conditions may include providing additional documents, maintaining a certain credit score, and having homeowner's insurance. To ensure a smooth transaction, it is important to meet these conditions.
