Which document provides assurance that all conditions have been met prior to the loan closing?

The loan commitment serves as a crucial document in the mortgage process, as it provides written confirmation from the lender that they are willing to lend a specified amount under certain conditions. This document typically outlines the specific terms of the loan, including the loan amount, interest rate, and any conditions that must be fulfilled prior to closing. The issuance of a loan commitment indicates that the lender has thoroughly reviewed the loan application and related documents, such as credit reports and income verification, and has determined that the borrower meets the necessary qualifications.

Prior to closing, such conditions might include the provision of additional documentation or satisfactory results from an appraisal. Therefore, the loan commitment is essential because it ensures that before the transaction is finalized, all prerequisites have been satisfied, creating a level of assurance for both the borrower and the lender.

In contrast, a title search primarily verifies that the property title is clear and that there are no outstanding liens, while an escrow agreement outlines the terms for holding funds and documents during the closing process. A deed of trust, on the other hand, is a security instrument that ensures the lender has a legal claim to the property in case of default, but it does not provide assurance regarding the fulfillment of loan conditions.