Underwriting has Conditional
Approval your loan file!
- A conditional loan approval is a preliminary approval given by a lender that is subject to certain conditions being met. This means that the lender has reviewed the borrower’s application and creditworthiness, and has tentatively agreed to provide the loan, but with some conditions attached.
- The conditions attached to a conditional loan approval may vary depending on the lender and the type of loan being applied for, but they typically include requirements for documentation, verification of employment and income, a satisfactory property appraisal, and clear title to the property.
- For example, a lender may give a borrower a conditional loan approval subject to the borrower providing additional documentation, such as tax returns or bank statements. The lender may also require a satisfactory appraisal of the property, and may require that any liens or other issues with the property title be resolved before final loan approval is granted.
- Once the borrower meets all of the conditions outlined in the conditional loan approval, the lender will review the documentation and may issue a final loan approval. At this point, the loan can move forward to closing and funding.
- It’s important to note that a conditional loan approval is not a guarantee of final loan approval, and the lender can still deny the loan if the borrower does not meet all of the conditions outlined in the approval. Therefore, it’s important for borrowers to understand the conditions of the approval and work diligently to meet them in order to increase the chances of final loan approval.
Mortgage Loan Process
Step:1 Documentation
Step:2 Appraisal
Step:3 Underwriting
Step:4 Conditional Approval
Step:5 Clear To Close
Step:6 Closing
Please feel free to contact us at any time if you have any questions about your loan status or next steps in the process.
