Surname 1Student's nameInstructor's nameCourseDateA mortgage loan commitmentA mortgage loan commitment is a document provided by a lender indicating that a borrower has actually passed the stipulated underwriting guidelines and that a lender is willing tooffer a home loan to the borrower. Thus, within this document, there are ten (10) prevalent conditions or terms that are clearly spelled out as defined below (Hinkel, 13).i.PartiesThese are individuals such as a borrower and a lender that are involved with a mortgage loan commitment.ii.Loan amountThis is the referenced amount of money that a borrower is granted by the lenderiii.Interest rateThe specified proportion charged on the amount of money that a borrower is granted by the lender. iv.Loan termThis is the specified time period which a borrower is expected to settle the loan amount granted.
Surname 2v.Repayment termThis is the specified method on how the loan would be repaid. Normally, a monthly repayment over the life time of the loan is the common way.vi.Security This term require a borrower to offer a valid and enforceable lien on the property to the lender as an assurance of loan repayment.vii.Prepayment This clearly outlines the guidelines on the possibility of the borrower to prepay the loan amount or portions given the fact that the prepayments are normally made on the scheduled date when regular principal payment and interest takes place.