What is a Mortgage Commitment Letter?

December 11, 2018
Author: New England Home Mortgage

You are ready to buy a home and have been pre-approved for a mortgage. As you begin to look at houses in your price range, you think you have completed all you need to get a loan. But pre-approvals, especially in a competitive market, are not enough to show you are serious about buying. The next step is obtaining a mortgage commitment letter.


A mortgage commitment letter is a formal written document from the lender promising you the loan. A commitment is more appealing to sellers than a pre-approval because it means the lender has looked into your finances more thoroughly. The commitment letter will include the type of mortgage, the length of the loan, the interest rate, and any conditions that need to be met.


In order to get a commitment letter, you must complete a uniform residential loan application. At this point, you will receive initial federal and state disclosures to sign. Once your application is reviewed by an underwriter, they will send a list of conditions that need to be satisfied. Conditions may include an appraisal of the house, flood insurance, or additional documentation. The process typically takes 20 to 40 days to get your letter.


Obtaining a mortgage can seem like a lengthy ordeal. At New England Home Mortgage, we walk you through the steps of the loan process, making sure you fully understand and are comfortable along the way. When getting a mortgage commitment letter, we help with the application, clearing the conditions, and moving you to the final step - the closing.


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