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In this video, the host discusses the concept of a commitment letter in real estate. It is a binding offer from a lender detailing the mortgage amount, interest rate, and repayment terms. Most commitment letters are conditional, meaning funding depends on meeting specific conditions within a set timeframe. Common conditions include providing additional documents, maintaining credit score and income, securing homeowner's insurance, and showing ability to make down payments. Successful completion of these conditions can lead to a smooth and quick transaction.
