Document background
The Mortgage Commitment Letter is a crucial document in Pakistani real estate financing that bridges the gap between loan application and final mortgage agreement. It represents the lender's formal pledge to provide mortgage financing, subject to specified conditions. This document is typically issued after the lender has completed initial due diligence but before the final mortgage documentation. The letter must comply with State Bank of Pakistan regulations and can be used for both conventional and Islamic mortgage products. It serves multiple purposes: confirming the lender's intent to provide financing, documenting key loan terms, and outlining conditions that must be met before loan disbursement. The Mortgage Commitment Letter is particularly important in Pakistan's property market as it provides security to both sellers and buyers during property transactions, often required for property registration processes.
