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:
________________________________________________.
Dated:
_____________________________________
________________________________________________________
LENDER
by an authorized
officer
Mortgage Commitment
Letter
Review List
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.
- Make multiple copies. Keep one with the transaction file. Give one to each related party.
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