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In this video tutorial, the host introduces the term "commitment letter" in the real estate industry. This letter is a binding offer from a lender detailing 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 specific timeframe. Examples of common conditions outlined in the letter include providing additional documents, maintaining credit score and income, obtaining homeowners insurance, and demonstrating the ability to make down payments. A smooth and quick transaction is achievable by meeting these conditions.
