- A promise made by a lender to advance a specific loan amount on specific terms.
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,
➥ Used internally by mortgage brokers and mortgage lenders.
- A lender that offers mortgages, often through a mortgage broker.
- 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.