Finance
In New York, a lender's 'commitment letter' for a mortgage signals:
AThe loan is guaranteed to close
BThe lender has approved the loan subject to specified conditions, creating a binding obligation to fund if conditions are met✓ Correct
COnly an intent to lend, not a binding commitment
DThat the interest rate is locked
Explanation
A mortgage commitment letter is a lender's written agreement to provide a loan on specified terms, subject to conditions (such as a satisfactory appraisal, clear title, and no material changes in the borrower's financial condition). It is generally binding on both lender and borrower.
Related New York Finance Questions
- In New York, 'PITI' refers to the components of a typical mortgage payment, which include:
- Pre-qualification for a mortgage differs from pre-approval in that:
- The STAR (School Tax Relief) program in New York provides:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in credit decisions based on:
- Seller concessions in a real estate transaction refer to:
- New York's transfer tax is imposed at a rate of $2 per $500 (or fraction thereof) of consideration. On a $350,000 sale, the state transfer tax would be:
- When a mortgage lender sells a loan on the secondary market, the original lender:
- What is 'loan-to-value ratio' (LTV)?
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →