Mortgage Commitment Letter
Effective: __________________ Expires: _____________________
Amount: $ _______________
_______________________________________________, described herein as LENDER, agrees that it will lend the sum of $__________ to _____________________, described herein as BORROWER, subject to the following terms and conditions:
1. Delivery of marketable title and title insurance. ________________ prior to closing shall deliver a mortgagee title insurance binder from a licensed title insurer, acceptable to LENDER, which will provide for the issuance at closing of a policy providing that the title is marketable, and free of all liens or charges other than current taxes and:
Borrower shall provide a current survey by a licensed surveyor showing no encroachments or defects.
A current building inspection report from a building inspector acceptable to LENDER showing no major structural defects. For purposes of this section, major shall be defined as requiring repair and being more than 3% of the purchase price.
This condition may be waived upon escrowing of sufficient funds at closing to be used to correct the described defects, which sums shall then be expended to complete the needed corrections.
That the zoning or other land development restrictions imposed by lawful authority shall permit use of the parcel as __________________________.
Credit life insurance sufficient to make monthly payments during a period of disability. If an amount is specified, credit life insurance is available from LENDER: ___. If no amount is specified credit disability insurance is not available from LENDER. In any event, credit life insurance if available from LENDER is not required to be purchased by BORROWER as condition of obtaining this extension of credit: you may either purchase through an insurance agency of your choice, or assign an existing policy.
Credit disability insurance sufficient to make monthly payments during a period of disability.
If an amount is specified, credit disability insurance is available from LENDER: _____. If no amount is specified credit disability insurance is not available from LENDER. In any event, credit disability insurance if available from LENDER is not required to be purchased by BORROWER as condition of obtaining this extension of credit: you may either purchase through an insurance agency of your choice, or assign an existing policy.
At the time of funding this commitment, the BORROWERS shall have experienced no material adverse change in employment.
That the following individuals execute a guarantee of prompt repayment of the loan in the form customarily used in this area for the same:
The furnishing by the borrower of an appraisal from an appraiser acceptable to lender showing a loan to value ratio of at least ____%.
The commitment is further subject to the following additional terms:
Interest Rate (APR): ___
Loan Term: _____________
Points to be paid at closing by BORROWER: ___
If an amount is included below, PMI (Private Mortgage Insurance) is also required:
If a date is stated below, the loan will balloon at that time:
_______, and the principal balance at that time will equal $
Other fees due at closing:
by an authorized officer
Mortgage Commitment Letter
This review list is provided to inform you about this document in question and assist you in its preparation. This is a standard mortgage commitment letter than can be used by any private or public lending group or institution. It specifies the terms and conditions of the agreed upon loan so a closing on the property in question can be set up and arranged between the various parties.
1. Make multiple copies. Keep one with the transaction file. Give one to each related party.
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