The Power of a Pre-Commitment Letter

The Power of a Pre-Commitment Letter

  • Jarret Coleman, U.S. Bank
  • 06/20/23

It’s no secret that we’re in one of the most competitive housing markets in history.  With limited supply and heavy demand, buyers are being forced to make concessions on their offers to have any shot at being the winning bid.  With these concessions comes added risk and stress to an already stressful process.  One of the most common concessions I’m seeing is that many sellers want a buyer to waive their mortgage contingency.  In short, by waiving this contingency, the buyer is essentially saying that their offer is not contingent on getting a mortgage, and if their mortgage were to be denied, the buyer would be at risk of losing their deposit. 


To help counteract this risk, US Bank has created a Pre-Commitment Letter.  A Pre-Commitment Letter is a full loan approval, subject to finding a home.  The typical conditions remaining are:


  1. Acceptable appraisal
  2. Homeowner’s Insurance
  3. Acceptable title insurance


That’s it!  When a prospective buyer has a Pre-Commitment Letter, they have much less risk when waiving their mortgage contingency since their loan is already approved. 


The typical turn time for a pre-commitment letter is 4-5 days since this does go through a full underwriter review.   There is no cost or obligation to obtain a Pre-Commitment Letter, but the comfort it gives the buyer is priceless.


Please don’t hesitate to call or email Jarret anytime with any questions or inquiries.  Jarret can be reached at:  or cell. 860-808-7473 | office. 860-616-4356.

Jarret Coleman has been a mortgage banker for 17 years.  He has worked for small broker shops as well as big banks, always hunting for the best possible rates, products and experience for his clients.  Jarret has funded over $2,500,000,000 in mortgages during this time, being ranked the #1 loan officer in Connecticut for the past 5 years by dollar volume, and ranked #4 nationally by dollar volume for all loan officers at all companies in 2022. Jarret's business is strictly referral based, and he and his team work tirelessly to ensure that we deliver the best possible customer service to their clients and referral partners.


Work With Us

Dedicated to you. Contact us today to start your home searching journey!