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In this episode of the Sigma Real Estate Glossary, the word of the day is "commitment letter." This document is a binding offer from a lender that specifies 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 set time frame. Common conditions include providing additional documents, maintaining credit score and income, having homeowner's insurance, and making required down payments. A smooth and quick transaction depends on meeting these conditions.
