What does a statement from a mortgage lender outlining terms and conditions for a loan represent?

A statement from a mortgage lender outlining terms and conditions for a loan is identified as a loan commitment. This document signifies that the lender has approved the borrower's request for a mortgage and has agreed to lend a specific amount under certain conditions. It serves as a formal offer that includes the details of the loan, such as the interest rate, loan amount, and any contingencies that must be met before finalizing the loan.

In contrast, a letter of intent is generally not a formal loan document but rather a preliminary agreement outlining the intention to enter into a loan or transaction, lacking the specificity required for a full commitment. A loan application is the initial document that a borrower fills out to apply for a mortgage, providing the lender with the necessary information to assess their eligibility. A loan estimate, on the other hand, is a document provided by the lender within three business days of receiving a loan application, giving a borrower an estimate of the fees and terms involved but does not represent final approval or terms as a loan commitment does.