What is a mortgage commitment?

A mortgage commitment is a formal written agreement from a lender stating that it will provide a loan for a specific amount on specified terms, subject to final underwriting conditions. Receiving a commitment letter is a major milestone in the home purchase process — it means the lender has reviewed the borrower's financial profile and the property and is prepared to fund the loan. Most purchase contracts in New York include a mortgage contingency that requires the buyer to obtain a commitment by a specific date.

In the Western Catskills, obtaining a mortgage commitment can sometimes take longer than buyers expect, particularly for unique or rural properties that require additional due diligence — such as appraisals with limited comparables, well water testing, or septic inspections. Properties in Delaware, Otsego, Greene, and Ulster counties that are seasonal, have large acreage, or include barns and outbuildings may also face closer scrutiny from lenders. Buyers are strongly encouraged to begin the mortgage process early and to communicate openly with their lender about any unusual property features.