What is the legal term for when a borrower officially commits to a real estate transaction?

The legal term for when a borrower officially commits to a real estate transaction is known as consummation. Consummation marks the point at which the borrower has completed all necessary agreements and obligations associated with the mortgage and the real estate transaction, effectively making them legally bound to the terms outlined in the contract.

This stage is significant because it generally involves the execution of various documents, such as the mortgage and note, which outlines the borrower's promise to repay the loan under specific conditions. Additionally, consummation typically aligns with the final step in the transaction process where ownership is transferred and all parties fulfill their respective commitments.

While "closing" could be perceived as a point of significant transaction activity, it generally refers to the entire process of finalizing a real estate deal, not the specific act of the borrower committing to the transaction. "Execution" often pertains to the signing of documents but does not encompass the broader legal commitment involved in consummation. "Finalization" implies bringing something to an end but lacks the specific legal connotation associated with the commitment of the borrower in the real estate context.