DictionaryThe buying process

Mortgage commitment letter: what it means

A mortgage commitment letter is a letter from your lender saying it is willing to give you the mortgage and on what terms: the amount, the term, the interest rate, the fees and the monthly payment. According to the CFPB, some lenders issue it for a limited time and subject to certain conditions.

In Spanish it is

Carta de compromiso del préstamo

Also written as: commitment letter · loan commitment letter

A man tours his new home with a housing specialist.

Verified on October 17, 2026

3 official sources

See the whole dictionary

The full explanation

Not all lenders use the same name for their letters, so read yours: check when it expires and what is still needed to close. Some states, such as Vermont, require the lender to give it to you in writing before closing.

An example

Esteban gets a commitment letter from his lender with the amount, rate and term of his mortgage. The letter expires in a few weeks and asks for one last bank statement, so he sends it right away.

You will see it in…

Your lender's letter approving your loan with conditions
Messages from your loan originator before closing
Your state's rules on mortgage loans

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

1. Freddie Mac · Glossary of terms: commitment letter (external site) · in English · Verified on October 17, 2026
2. CFPB · What's the difference between a prequalification letter and a preapproval letter? (external site) · in English · Verified on October 17, 2026
3. Legal Information Institute (Cornell Law School) · Vt. Admin. Code 21-010-010: form, content and timing of residential mortgage loan commitment letters (external site) · in English · Verified on October 17, 2026