Commitment
Definition
- An agreement, often written, in which a lender promises to lend money on certain terms for a specified period.
Synonyms
assurance, vow, obligation, pledge, promise
Related Terms and Acronyms
- Commitment Fee — Definition,
- A fee paid by a borrower to a lender who promises 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.
- Firm Commitment — Definition,
- A lender's promise to lend money to a specific borrower on specified terms at a certain time.
- Loan Commitment — Definition,
- A lender's promise to advance a specific sum on specific terms.
- Mortgage Broker (MB) — Acronym, Important,
- One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
- Rate Lock-in — Definition,
- A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
- Speculation Builder — Definition,
- A developer that builds houses without a commitment from a purchaser.
- Speculation Home — Definition,
- A house built before a buyer has been found, on the assumption that one will be found.
- 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.
