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In this episode of the Sigma Real Estate Glossary, the word of the day is "commitment letter." This is a binding offer from a lender that specifies 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 homeowner's insurance, and making the required down payment. To ensure a smooth transaction, it's important to meet these conditions promptly.
