Escrow & Title
What is a commitment letter from a lender and when is it issued?
AThe initial loan application
BA formal written promise to make a specific loan after underwriting conditions are satisfied✓ Correct
CThe loan closing documents
DA pre-qualification letter
Explanation
A loan commitment letter (firm commitment) is issued by the lender after underwriting is complete, formally committing to make the loan subject to specified remaining conditions (typically appraisal, title, and hazard insurance). It gives the borrower and seller confidence to proceed to closing.
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