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The video tutorial discusses the concept of a commitment letter in real estate transactions. A commitment letter is a binding offer from a lender that includes the mortgage amount, interest rate, and repayment terms. These letters are usually conditional, meaning the lender will fund the mortgage only if certain conditions are met within a specific time frame. Common conditions include providing additional documents, maintaining a stable credit score and income, showing proof of homeowners insurance, and demonstrating the ability to make the required down payments for a smooth and quick transaction.
