Mortgage Loan Commitment Letter Samples

Kathleen Esposito
House keychain

If you're looking for mortgage loan commitment letter samples, it's likely you're in the final stages of the process of buying a house. The loan commitment letter is a document that the lender gives you after your application is approved, showing that the lender agrees to provide a loan to you, provided certain conditions are met. Once you have the loan prepared, you are ready to go to closing.

Mortgage Loan Commitment Letter

The commitment letter is usually fairly long since it covers a lot of bases. First of all, it will list your loan amount, your term, your interest rate and the type of mortgage you are going to receive. You'll then see what your monthly payments will be and how much you need to add to your escrow account and any late payment penalties. Since you haven't closed on your loan yet, your letter may mention a lock-in period. When this period ends, you'll have to reapply and you may wind up with a different interest rate.

Your letter may also have clauses regarding title insurance and hazard insurance, since these are usually required. It may also mention closing costs. You won't be granted your loan unless you have all of the aspects mentioned in the letter taken care of.

Where to Find Mortgage Loan Commitment Letter Samples

While your best source of commitment letter samples is probably either your mortgage lender or your real estate agent, you can also find several examples online. Here are just a few of the websites where mortgage loan commitment letter samples are available:

If you'd like to see a commercial mortgage loan commitment letter sample instead of one for a personal residence, you can look at Mortgage Smart.

How Loan Commitment Letters Work

Just because you have a commitment letter doesn't mean that you are 100 percent guaranteed a mortgage loan at the rate and terms specified. First, you have to make sure that you and the seller agree on the selling price and on who will pay for what closing costs. Next, you have to make sure you can afford the down payment and the monthly payments on the loan. Finally, you need to meet with a closing agent and file all of the paperwork. Then, and only then, is your mortgage loan valid.

The purpose of the letter is to:

  • Show the seller that you can afford the property and can obtain financing
  • Tell you exactly what you will have to pay each month if your mortgage goes through
  • Prepare you for the legally binding agreement that you will have to sign at closing

If you have any questions when looking through the sample letter, you should ask your real estate agent. He or she is probably well versed in the mortgage process after having worked with countless buyers and sellers. When you get your actual letter, you should talk to your mortgage lender to ensure that you understand all of the wording. Note that you may be required to sign the letter proving that you have read it and understand the terms as written. You definitely don't want to leave yourself open to any surprises since buying a home is probably the largest financial investment you will ever make.

Mortgage Loan Commitment Letter Samples