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In this episode of the Sigma Real Estate Glossary, the word of the day is "commitment letter." This is a binding offer from the lender that includes the mortgage amount, interest rate, and repayment terms. Most commitment letters are conditional, meaning the lender funds the mortgage if certain conditions are met within a specific time frame. Common conditions include providing additional documents, maintaining credit scores and income, proof of insurance, and making required down payments for a smooth transaction.
