What Is a Mortgage Commitment Letter in NH Real Estate?

🏡 What Is a Mortgage Commitment Letter in NH Real Estate?

Once a buyer has gone through underwriting and submitted all required documents, the lender issues a Mortgage Commitment Letter — one of the most important approvals in a New Hampshire real estate transaction.

This letter signals that the buyer’s financing is on track and the lender is prepared to fund the loan, pending final conditions.

Here’s what NH buyers and sellers need to know.

⭐

What Is a Mortgage Commitment Letter?

A Mortgage Commitment Letter is a formal written notice from the lender stating that the buyer is approved for a mortgage, subject to certain conditions.

It is stronger than a pre-approval because underwriting has already begun or been completed.

⭐

What’s Included in a Commitment Letter?

Most NH lenders include:

✔ Loan amount

✔ Loan type (Conventional, FHA, VA, USDA)

✔ Interest rate (locked or floating)

✔ Buyer’s financial approval status

✔ List of remaining conditions

✔ Expiration date of the commitment

The letter confirms the buyer is solid and the deal is progressing.

⭐

Types of Mortgage Commitment Letters

1. Initial Commitment

Buyer is approved with conditions that must be satisfied before closing.

2. Conditional Commitment

Specifies detailed requirements such as income verification, appraisal review, or updated bank statements.

3. Final Commitment

All major conditions have been cleared, and the loan is nearly ready for Clear to Close (CTC).

⭐

Common Conditions Found in NH Commitment Letters

A lender may require:

✔ Updated pay stubs or bank statements

✔ Employment verification

✔ Acceptable appraisal

✔ Title search approval

✔ Proof of homeowners insurance

✔ Clarification of deposits or credit inquiries

✔ No major changes in credit or employment

These must be resolved before the loan can close.

⭐

Why a Commitment Letter Matters for Buyers

The letter gives buyers:

✔ Confidence the financing is on track

✔ A major milestone toward closing

✔ Better negotiating power

✔ Proof of strong financial backing

It’s often the biggest hurdle after the inspection.

⭐

Why Sellers Care About Commitment Letters

Sellers in NH rely on this letter because it:

✔ Shows the buyer is financially qualified

✔ Reduces the risk of the deal falling apart

✔ Provides reassurance before taking home off market

✔ Helps keep closing timelines predictable

Sellers feel much more secure once the buyer’s lender commits in writing.

⭐

What Happens After Receiving the Commitment Letter?

The next steps are:

1️⃣ Satisfy any remaining conditions

2️⃣ Appraisal and title must be finalized

3️⃣ Lender prepares final closing disclosure

4️⃣ Buyer signs the CD (3-day rule)

5️⃣ Loan moves to Clear to Close

It’s the final stretch before closing.

⭐

Bottom Line

A Mortgage Commitment Letter is a major milestone in NH real estate, confirming the lender is prepared to fund the loan once final conditions are satisfied. It provides confidence, stability, and forward momentum for both buyers and sellers.

Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com