A lender’s offer to grant a mortgage loan outlining the terms, the amount of the loan, the interest rate and other conditions.  The lenders commitment or agreement to make the home loan will usually involve the quoted rate along with a time period for which the commitment is valid.  The commitment may have conditions attached that must be satisfied to obtain the final loan.  It can also serve as a communication of the lender’s decision on the borrower’s application.  Lenders will often provide written commitments letters stipulating any conditions to granting the loan as well as escape clauses that allow the lender to cancel the commitment based on such adverse material changes in the application or the borrower’s credit or financial position.

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