Contracts
In New Mexico, when a lender issues a 'loan commitment letter,' it means:
AThe loan has been funded
BThe lender has approved the loan subject to any remaining conditions listed in the letter, such as appraisal and title✓ Correct
CThe interest rate will never change
DThe loan application has been received but not reviewed
Explanation
A loan commitment letter is a conditional approval — the lender agrees to fund the loan on the stated terms if the remaining conditions (clear title, satisfactory appraisal, no change in borrower's financial status) are met before closing.
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