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welcome back to the sigma real estate glossary! Today's word of the day is "commitment letter." This is a binding offer from your lender that includes 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 specific time frame. Common conditions include providing additional documents, maintaining credit score and income, having homeowners insurance, and making required down payments. To ensure a smooth transaction, it is important to meet these conditions.
