What is a mortgage commitment?

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I’m waiting for my co-op loan to be cleared to close. The mortgage broker said the loan was in the final stages of review and we may go to closing next week. The attorney said they recieved a mortgage commitment last night. What does that mean?

  1. Reply
    February 18, 2011 at 2:50 pm

    It means that the lender has pre-approved you. You are a good borrower. However, there could be some other issues, outside of your control, that could cause the lender to deny your application (appraisal, etc…).

  2. Reply
    Mark B
    February 18, 2011 at 3:24 pm

    Just to be sure what he means by that give him a call.

    What I think that is what is meant that you are clear to close.

    Do yourself a favor and double check.

    Good Luck!!


  3. Reply
    February 18, 2011 at 3:57 pm

    They could possibly just be referring to a title insurance commitment. We call them “lender’s commitments.” Which would mean that they have completed the title work and have ordered your title insurance. If you’re unsure, ask your attorney. I work for an attorney and we understand that everyone doesn’t speak the “lingo” and sometimes need explanations. We do forget that sometimes, though, and it’s fine to remind us! Good luck with your loan. Be careful to keep an eye on the lenders that are freezing funds, though. Some of these are Aegis Mortgage, Flick Mortgage, HomeBanc Corp and National City Mortgage. They are on our list of lenders not to use anymore because they cannot fund the loan.

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