Finance
What is the purpose of a Vermont 'mortgage commitment letter' from a lender?
AIt guarantees the final interest rate regardless of market changes
BIt formally commits the lender to provide financing subject to specified conditions, allowing the buyer to satisfy a financing contingency✓ Correct
CIt replaces the need for a purchase and sale agreement
DIt guarantees closing will occur within 30 days
Explanation
A mortgage commitment letter is the lender's formal written agreement to provide financing under specified terms, subject to conditions such as satisfactory appraisal and clear title. In Vermont transactions, receipt of a commitment letter is typically required to satisfy the financing contingency.
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