Real Estate Term of the Day: Loan Commitment
LOAN COMMITMENT – an agreement to lend money, generally of a specified amount, at specified terms at some point in the near future (Barron’s Dictionary of Real Estate Terms)
Below is a brief guideline of the loan process:
- You submit the completed loan application and any required supporting documentation to the lender
- The lender provides a good faith estimate of closing and related costs, plus initial Truth-in-Lending disclosure
- The lender orders an appraisal of the property, a credit report and begins verifying your employment and assets
- The lender evaluates the loan application and your supporting documents, approves the loan and issues a letter of commitment
- You sign the closing loan documents and the loan is funded
- The lender sends the funds to escrow
LESLIE MONACO REAL ESTATE 