Loan commitment
A written statement from the lender that the buyer is approved for the loan, subject only to a few final conditions like the appraisal. Usually the trigger for removing the financing contingency.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
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See how it worksWhere this comes up: under contract
Part 1 of 4
Why a seller cares
This is the moment the buyer's financing becomes real. Until the commitment, the loan is a lender's opinion; after it, the deal has a lender behind it and usually one door fewer for the buyer to leave by.
Part 2 of 4
A simple example
Day 26 of a 30-day financing contingency. The lender issues a commitment subject only to the appraisal and a final credit check.
| What arrives | What it tells you |
|---|---|
| A preapproval letter, at offer | The lender liked the buyer's numbers on paper |
| A loan commitment, under contract | The loan is approved, with a short list of last conditions |
| Clear to close, days before closing | Every condition is met and the money can be sent |
The commitment is the middle of three steps, and the one that removes the financing contingency.
Part 3 of 4
What people get wrong
That a commitment is unconditional. It usually lists a few conditions, and a buyer who fails one at the last minute can still lose the loan.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines loan commitment in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.