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In this episode of the Sigma Real Estate Glossary, the word of the day is "commitment letter." This letter is a binding offer from your lender that specifies the mortgage amount, interest rate, and repayment terms. Most commitment letters are conditional, meaning the lender will fund the mortgage only if certain conditions are met within a certain time frame. Common conditions include providing additional documents, maintaining credit score and income levels, obtaining homeowner's insurance, and making the required down payment. To ensure a smooth transaction, it's important to satisfy these conditions in a timely manner.