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In the latest episode of the Sigma Real Estate Glossary, host Jimmy Odone introduces the concept of a commitment letter which 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 specified time frame. Common conditions include providing additional documents, maintaining credit score and income, having homeowners insurance, and being able to make the required down payments. A smooth and quick transaction depends on fulfilling these conditions.
