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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Conditional Commitment


Synonyms:depending on, granted on certain terms, promise, subject to, with strings attached
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of conditional commitment

conditional commitment
1. A promise made by a lender to give a loan if the borrower meets the specified requirements.

Related Terms and Acronyms:

  • approval   An assessment made by a lender of a borrower's ability to pay for a home and a confirmation of the amount the borrower may obtain.
  • commitment   A written agreement from a lender promising to lend money on certain terms for a specified time period.
  • conditional sale (C/S)   An agreement between the buyer and seller in where certain conditions must be met before the property sale can be finalized.
  • kicker   Any benefit to a lender above ordinary fixed-interest payments such as an equity position in a property or a percentage participation in the income stream.
  • lender   The bank or mortgage company offering the loan.
  • loan commitment   A lender's promise to advance a specific sum on specific terms.
  • mortgagee   The lender in a mortgage transaction.
  • pre-approval   A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
  • pre-approval letter   A document from a lender or broker, estimating how much a potential home-buyer could borrow, based on current interest rates and a preliminary look at credit history.
  • pre-qualification   An informal process in which a lender will offer an opinion on how much money you may be able to borrow. This opinion is based entirely on the financial information you provide and is neither binding nor necessarily accurate because lenders have not yet verified your financial information.

More Related Terms and Acronyms

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