Finance
A Connecticut lender approves a borrower for a mortgage. The 'commitment letter' provided to the borrower is:
AA guarantee that the loan will close at the stated terms
BA conditional approval that the loan will be funded if all conditions are met by the stated expiration date✓ Correct
CA binding contract with no conditions
DSimply a marketing document with no legal significance
Explanation
A mortgage commitment letter is a conditional approval stating the lender will fund the loan if all specified conditions are met (e.g., clear title, satisfactory appraisal, no changes to borrower's financial situation). It is not an unconditional guarantee but is stronger than a pre-approval.
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