Legal Definitions - commitment letter

A commitment letter is a written offer from a lender to grant a mortgage loan. It outlines the loan amount, interest rate, and other terms of the loan. This letter is also known as a letter of commitment.

For example, if you apply for a mortgage loan, the lender may send you a commitment letter stating that they are willing to lend you a certain amount of money at a specific interest rate. This letter also includes any conditions that you must meet before the loan can be finalized.

Another example of a commitment letter is a letter of intent. This is a document that outlines the terms of a proposed agreement between two parties. It is not legally binding, but it shows that both parties are serious about moving forward with the agreement.

Overall, a commitment letter is an important document that outlines the terms of a loan or agreement. It helps both parties understand what is expected of them and ensures that everyone is on the same page.