That “commitment letter” your lender sends isn’t the green light to celebrate yet. In NYC real estate, especially Staten Island and Brooklyn, it’s a crucial checkpoint, not a finish line. It outlines what the bank will do once every remaining condition is satisfied.

What the Commitment Letter Actually Is

It’s a lender’s written promise to fund your loan once conditions are cleared. Typical conditions include:

• Final employment and income verification.

• Title and insurance approval.

• Appraisal acceptance.

• Proof that no new debt or credit changes occurred.

Only when all are cleared do you get the true “clear to close.”

Why It Matters in NYC

Commitment letters are what trigger the legal process toward closing. Attorneys use them to start scheduling and coordinate document prep. Sellers treat them as proof that financing is legitimate. Without one, nothing moves forward.

Common Mistakes Buyers Make

• Assuming the loan is done. It’s conditional until every verification is cleared.

• Opening new credit cards or financing furniture which can void the commitment.

• Ignoring expiration dates - letters usually expire within 60–90 days.

The commitment letter is a promise but you still have to earn the close.

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Joseph Ranola | Five-Star Staten Island & South Brooklyn Realtor® (30 + Google reviews)
Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team
Serving 103xx and 11209 / 11214 / 11228 | $25 M + closed volume
📞 917-716-1496 | ranolarealestate.com