Loan Commitment

Lender's agreement to make money available to a borrower in a specified amount, at a specified rate, and within a specified time. See also Commitment Fee.

An agreement to lend money, generally of a specified amount, at specified terms at some time in the future.
Example: Before commencing development, Abel obtained a loan commitment from a construction lender. Also, he was required to get a Takeout Financing commitment for a Permanent Mortgage.

Commitment to a borrower by a lending institution that it will loan a specific amount at a certain rate on a particular piece of real estate. Such commitment is usually limited to a specified time period (e.g., four months), which is commonly based on the estimated time that it will take the borrower to construct or purchase the home contemplated by the loan.