In real estate finance, a Loan Commitment is a lender’s written agreement to provide a loan to a borrower under specified terms and conditions. The commitment is typically issued after the lender completes appraisal, underwriting, and credit review.
A loan commitment outlines key terms such as the loan amount, interest rate, loan term, and conditions that must be met before funding. While it represents a contractual promise to lend, the commitment is usually contingent upon final verification of information and satisfaction of stated requirements.
