Commitment Letter

Description of Commitment Letter

A commitment letter is a writing that explains an offer to extend the range of a loan to an applicant.

Example of Commitment Letter

Commitment Letter

How to write? – Advice and Tips

In fact, a commitment letter is a legally binding document issued by a lender to a loan applicant. The terms and conditions that are involved with a loan commitment should be described in the content of the letter.

The main goal of this kind of letter is to inform that the loan has been approved with certain conditions and should be sent to the borrower.

Also, the commitment letter is known as Offer of Advance, the letter guarantee that the contract is agreed by both parts to sign. In the content, the lender includes clearly specifications and the applicant should evaluate it closely.

The amount of the loan is also included along with the interest rate, legal and monetary penalties, actions and other punishments if the loan fails to the payment.

The commitment letter have the structure of a formal written and include, like a said in the above paragraph should include all the conditions and terms, your address, the objectives that you need to accomplish and signature.

Despite is like a contract, the commitment letter is not a legal document is just an agreement of terms before sign the real contract.

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