what does conditional approval mean for a home loan

Best answer


Conditional approval is a type ofpreliminary approval or 鈥減re-approval鈥?from a lender, indicating that you should be approved for a home loan up to a certain dollar limit. It鈥檚 an important early step in buying a home because it gives you a clear idea of what a lender is willing to give you, and therefore what you can afford.

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  • What is conditional mortgage approval?

  • For any mortgage to close, you’ll need to provide the right documentation to your lender and have that loan go through underwriting. Conditional mortgage approval simply involves getting a letter proving this part of the process is complete. Ready for mortgage pre-approval?

  • What is the difference between conditional approval and verified approval?

  • For example, conditional approval for an FHA loan or a VA loan may require you to provide specific documentation as a condition of getting final approval on the mortgage. Verified approval means the underwriter has seen documentation of a borrower鈥檚 credit history, income and assets, and can guarantee that you have the means to buy the home.

  • How do I get a notice of conditional loan approval?

  • Tell your lender you want a notice of conditional loan approval once your loan reaches that stage. Wait for an underwriter to review your information to determine whether you’re eligible for conditional approval for a home loan. If you’re conditionally approved, you’ll receive a notice or letter to that effect.

  • What are the conditions of getting mortgage approval?

  • Those conditions vary depending on the situation. For example, conditional approval for an FHA loan or a VA loan may require you to provide specific documentation as a condition of getting final approval on the mortgage.

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