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In this video tutorial, the host explains that a commitment letter is an offer from a lender with details such as the mortgage amount, interest rate, and repayment terms. Most commitment letters are conditional, meaning the lender will fund the mortgage if certain conditions are met within a specified time frame. Common conditions include providing additional documents, maintaining credit score and income, having homeowner's insurance, and making required down payments. Meeting these conditions is crucial for a smooth and quick transaction.
