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A commitment letter is a binding offer from a lender detailing the mortgage amount, interest rate, and repayment terms. Most are conditional, meaning the lender will fund the mortgage once certain conditions are satisfied within a specified timeframe. Common conditions may include the buyer providing additional documents, maintaining their credit score and income stability, proving homeowners insurance, and demonstrating the ability to make the required down payment. A comprehensive list of conditions is usually provided. To ensure a smooth and quick transaction, it’s important for the buyer to meet these stipulations.