Loan Commitment

Definition

  • A promise made by a lender to advance a specific loan amount on specific terms.

Synonyms
loan commitment letter, unfunded loan commitment

Related Terms and Acronyms

  • Commitment Definition,
    • A written agreement from a lender promising to lend money on certain terms for a specified time period.
  • Commitment Letter Definition,
    • A formal offer by a lender which states the terms under which it agrees to lend money to a home buyer. Also known as a "loan commitment." This letter will indicate the contingencies that must be cleared prior to funding the loan.
  • Conditional Commitment Definition,
    • A promise by a lender to make a loan if the borrower meets certain requirements.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • Firm Commitment Definition,
    • A lender's promise to lend money to a specific borrower on specified terms at a certain time.
  • Loan Definition,
    • Letting another party use something of value temporarily.
  • Loan Application Definition,
    • A document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • LPQ Amount Definition,
    • A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
  • Mortgage Lender (ML) Acronym, Very Important,
    • A lender that offers mortgages, often through a mortgage broker.
    Used internally by mortgage brokers and mortgage lenders.
  • Mortgagee Definition, Important,
    • The lender in a mortgage transaction.
  • Promissory Note (PN) Acronym,
    • A written promise to repay a loan by a specified time.
  • Standby Commitment Definition,
    • A commitment from a lender to make a loan in a specified period of time on specified terms with the understanding that the borrower will not likely draw down the funds.
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