Finance
What is the purpose of a mortgage commitment letter?
ATo confirm the appraisal value of the property
BTo provide the borrower with the lender's written agreement to make the loan under specified conditions✓ Correct
CTo guarantee the interest rate permanently
DTo outline the closing costs the seller must pay
Explanation
A mortgage commitment letter (loan commitment) is the lender's written promise to make a mortgage loan for a specific amount to a specific borrower, subject to stated conditions such as satisfactory appraisal and title.
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