Sample "Mortgage Commitment Letter"

A Mortgage Commitment Letter is a formal document that confirms the willingness of a lender to sign a mortgage agreement with a borrower. The last step in the negotiations between the parties, this statement should contain the provisions the lender and the borrower have discussed once the prospective borrower applied for the mortgage.

A Mortgage Commitment Letter Sample can be found through the link below. Usually, this statement consists of just one page since you need to reference other documents and a future agreement the lender and the borrower will sign. Identify the parties by their names and addresses, indicate the type of the mortgage that was approved and its exact amount, confirm you are committed to providing the client with the mortgage funds, and list the main terms of the loan - its duration, interest rate, and insurance that will cover the property in question. If the borrower has to comply with certain conditions or send you more information that will facilitate the quick signing of the documentation, tell them about it and add your contact details to let them reach out to you as soon as the letter is received.


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Sample Mortgage Commitment Letter
From: You Owe Us Lenders
4562 Debt Street
Seattle, Washington 98105
+1 206-334-4556
[Date]
To: Anna McClintock
2346 Penrose Circle
Spokane, Washington 99204
Dear Ms. McClintock,
We are pleased to inform you that your application for a mortgage loan on the
above-referenced property has been approved.
Loan Number: 1234-5678
Borrower: Anna McClintock
Co-Borrower: John McClintock
Property Address: 4567 Red Letter Avenue, Spokane, Washington 99204
Commitment Expiration: 8.15.2020
Type of Loan: FHA
Loan Amount: $100,000
Loan Term: 360 months
Interest Rate: 3.5%
P&I Payment: $627.34
©
TEMPLATEROLLER.COM
Sample Mortgage Commitment Letter
From: You Owe Us Lenders
4562 Debt Street
Seattle, Washington 98105
+1 206-334-4556
[Date]
To: Anna McClintock
2346 Penrose Circle
Spokane, Washington 99204
Dear Ms. McClintock,
We are pleased to inform you that your application for a mortgage loan on the
above-referenced property has been approved.
Loan Number: 1234-5678
Borrower: Anna McClintock
Co-Borrower: John McClintock
Property Address: 4567 Red Letter Avenue, Spokane, Washington 99204
Commitment Expiration: 8.15.2020
Type of Loan: FHA
Loan Amount: $100,000
Loan Term: 360 months
Interest Rate: 3.5%
P&I Payment: $627.34
©
TEMPLATEROLLER.COM
Monthly Tax Est: $387.00
Total Est. Payment: $1,014.34
The Mortgage Company reserves the right to modify this approval or declare it null and
void if any representations made in the loan application are incomplete or incorrect if any
material facts appear which have not been previously revealed or if any adverse change in
the borrower’s credit, outstanding obligations, employment or in the value or condition of
the property, prior to closing. This loan commitment is not assignable or transferable and
is subject to all terms and conditions stated herein.
Any of the following events may adversely affect the loan decision. Therefore, you are
required to immediately inform us if any of the below events or actions occur prior to the
closing and funding of your loan:
● Change in employment status or income, or change of employer;
● Any new inquiry into your credit, any new debt or credit obtained, or co-signing
on any other loan;
● Any new property obtained, or undisclosed ownership in the property at the time
of application;
● All funds used for down payment and closing must be from an account verified on
your loan application.
This Loan Commitment is contingent upon, and subject to, the availability of this loan
product and program in the secondary market from the issuance of this Loan
Commitment through the closing and funding of the loan. We require 5 business days’
notice on all closings.
● The Fire and Extended Coverage Insurance Policy or Binder (Home Owner's
Insurance) of a carrier acceptable to Lender must be produced 5 business days
prior to settlement, along with a paid receipt. The policy must be an amount at
least equal to the mortgage for a minimum of 1 year and contain a mortgage
endorsement showing Lender as the first mortgagee. The insurance carrier must
satisfy Lender requirements applicable at the time of closing. The policy must
provide that said insurance shall not be canceled or coverage changed unless 30
days’ prior written notice has been given to Lender. Not applicable for condos.
©
TEMPLATEROLLER.COM
● Certificate of Insurance itemizing $1,000,000 dollar coverage for Hazard,
Liability, and Fidelity Bond Coverage (if applicable) is required on Condominium
projects or for common areas in PUD projects. New construction must be 100%
complete including floors, carpeting, driveway, etc. The property must be
inspected at least 5 days prior to closing including photos by the appraiser.
We hope that this offer of financing is acceptable and we thank you for this opportunity to
be of service to you.
Sincerely,
[Loan Officer’s
Name]
[Loan Officer’s ID
Number]
[Signature]
©
TEMPLATEROLLER.COM
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