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loan commitment

   Also found in: Legal 0.02 sec.
Loan commitment
Assurance by a lender to make money available to a borrower on specific terms in return for a fee.

loan commitment

In real estate,a formal promise by a lender to loan up to a specified amount of money, depending on the appraised value of the collateral, with additional details regarding the interest rate, term of the loan, property on which mortgage will be taken, and a date on which the commitment will expire.



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It's obviously important to know when the urgency have a fast and firm loan commitment outweighs anything else.
Schneider obtained a commitment letter from the banks, under which they agreed to provide acquisition financing; as consideration, Schneider agreed to pay a nonrefundable loan commitment fee and to indemnify the banks for any legal fees associated with the commitment of funds.
The program, established in 1977, is designed to provide an efficient and consistent review and classification of any loan or loan commitment shared by three or more supervised institutions and totaling $20 million or more.
 
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