What is a Mortgage Commitment, and How is It Different From Preapproval?

Published On: September 3, 2022|Categories: Blog, Buyers, How-To, Mortgage & Home Loans, Mortgages|Tags: Buying A Home, Loans, Mortgage Commitment, Mortgages, Preapproval|

When you’re buying a home, getting preapproved for a mortgage is an important step. But what happens after you’ve been preapproved? You might think that the next step is to commit to a mortgage, but that’s not always the case. In fact, there’s a big difference between getting a mortgage commitment and getting preapproved. This guide explains what that difference is and how to get the right one for you.

What is a Mortgage Commitment, and How is It Different From Preapproval?

A mortgage commitment is a written agreement from a lender that says they’re willing to lend you a certain amount of money for your home. This is different from preapproval because it’s written by an official underwriter.

What Are the Benefits to Getting a Mortgage Commitment?

There are a few benefits to getting a mortgage commitment:

It’s an important step in the home-buying process.
It shows that you’re a serious buyer.
It gives you more bargaining power with sellers.
It can help you get a better interest rate.

How to Get a Mortgage Commitment

If you’re interested in getting a mortgage commitment, there are a few steps you’ll need to take:

Find a lender who offers mortgage commitments.
Get preapproved for a mortgage.
Submit your loan application and supporting documentation to the lender.
The lender will then underwrite your loan and issue a mortgage commitment.

The Difference Between a Preapproval and a Mortgage Commitment

The main difference between a preapproval and a mortgage commitment is that a mortgage commitment is issued by an underwriter, while a preapproval is not. A preapproval is simply a letter from a lender saying that you’re qualified for a loan up to a certain amount. A mortgage commitment, on the other hand, is a binding agreement from the lender that they’re willing to give you a loan for a specific amount of money.

When Should You Get a Mortgage Commitment?

You should get a mortgage commitment when you’re ready to move forward with the home-buying process. This typically happens after you’ve found a home and you’re ready to make an offer. It’s important to get a mortgage commitment before you sign a purchase contract, because this will give you more leverage with the seller.

How to Prepare for Getting a Mortgage Commitment

If you’re planning on getting a mortgage commitment, there are a few things you’ll need to do:

Find a lender that offers mortgage commitments.
Get preapproved for a mortgage.
Submit your loan application and supporting documentation to the lender.

$629,000 Active

5611 S Sheridan Road Tampa, Florida

4 Beds 3 Baths 1,439 SqFt 0.170 Acres

Welcome to your wonderful home oasis or investment property. Property was remodeled within the last two years located in a safe neighborhood, conveniently located near public transportation. This cozy residence features modern appliances, including a washer and dryer, all within a comfortable living space. It also features a large back yard. This property will not last long!

$269,000 Active

7205 Rhode Island Drive Tampa, Florida

2 Beds 1 Baths 798 SqFt 0.210 Acres

Welcome to North Ybor! This 1927 craftsman bungalow has had all the major work and headaches taken care of so you can move in immediately! This 4 bedroom, 2 bath home was completely updated in 2021. The open-concept living room and eat-in kitchen are perfect for hosting friends and family. The front bedroom is currently used as an office and has ample natural light filtering through to keep your workday flowing. As you walk through the home you will see two additional bedrooms that sandwich the guest bathroom. Both bedrooms comfortably fit queen-sized beds and additional furniture. The guest bathroom has a floating vanity and features a tiled shower/tub combo with a window. The primary suite gives you privacy as it is away from the other rooms. The primary ensuite features a double vanity and tiled shower with a window, providing great natural light. Towards the rear of the house, you will enter the mudroom/pantry/laundry room combo. This area is a blank canvas for its next owners to personalize to their taste! The fenced backyard allows your fur friends more than enough space to roam freely. Additionally, the garden beds in the backyard let you grow your own produce or fresh flowers. Also, every two years you will be surprised with a bountiful harvest of mangoes from the 90+-year-old mango tree alongside the private parking pad. This home allows you to quickly travel to Historic 7th Ave, Centro Ybor, Cuscaden Park Pickleball Courts and the developing mixed-use neighborhood of GasWorx. Come see and immerse yourself in the rich culture and history Cigar City has to offer!

*HVAC 2019 (Serviced 2022), Plumbing 2017, Permitted Foundation Repair 2022, WDO Tenting 2022, Metal Roof 20+ years of useful life remaining*

$360,000 Active

3001 N 16th Street Tampa, Florida

4 Beds 2 Baths 1,316 SqFt 0.140 Acres

This sophisticated studio offers the perfect retreat for those seeking a minimalist lifestyle in the vibrant city, or for those looking to immerse themselves in the diverse offerings of Downtown Tampa.
Whether you're a hockey fan attending the Lightning games, enjoy attending shows at the Straz Center for the Performing Arts, participate in the many activities on Riverwalk, or simply crave the excitement of city living, this residence serves as the perfect home base for your Tampa getaway.
Upon entering, you're greeted by floor-to-ceiling windows that frame stunning views of the Tampa skyline, Tampa Bay, and the tranquil Hillsborough River. Step out onto your private balcony to breathe in the sights and sounds below.
This residence has been thoughtfully updated with tile flooring throughout, creating a seamless and modern aesthetic. The stylish kitchen features wood cabinetry, granite countertops, and ample space to accommodate a breakfast table. The bathroom boasts a luxurious frameless walk-in shower with designer tile, providing the perfect place to rejuvenate after a long day.
Elevate your lifestyle at SkyPoint with exclusive access to an array of resort-style amenities. Immerse yourself in luxury with a heated pool and spa that offer stunning views of the cityscape. The chic clubroom, theater room, and billiards area provide ideal spaces for hosting gatherings or meeting neighbors. Outdoor grilling stations and an elevated urban park create perfect settings for entertainment or relaxation. Stay active in the state-of-the-art cardio and fitness rooms. The 24/7 concierge service ensures a comfortable and luxurious living experience within the building. There is even a complementary coffee machine in the lobby. Conveniently located to the Arts, SkyPoint’s downtown location puts you at the epicenter of Tampa's vibrant arts and culture scene. From the Tampa Theatre to Straz Center for the Performing Arts, Curtis Hixon Park, nationally recognized Riverwalk, Amalie Arena, and music venues and street festivals, you'll have the best of Tampa's creative community right at your doorstep. Minutes away from Bayshore Blvd., Water Street Tampa, Channel District, Hyde Park, and Ybor. There are several stylish eateries on the ground floor of your building and countless more around the corner.

Experience the best of urban living at SkyPoint where luxury meets convenience in the heart of Tampa.

$495,000 Active

777 N Ashley Drive 2206 Tampa, Florida

1 Beds 1 Baths 684 SqFt 0.980 Acres

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