What Is Conditional Approval?
Conditional Approval: An underwriter's approval that depends on you providing a list of remaining items.
A conditional approval means the underwriter has reviewed your file and will approve the loan once you satisfy certain conditions.
Common conditions
- Updated pay stubs or bank statements
- Explanations for deposits or credit inquiries
- Proof that a gift or other funds were transferred
- Final homeowners insurance
- Completed appraisal repairs
What it means for your contract
A conditional approval with only routine conditions left is often when buyers feel comfortable removing the financing contingency. Ask your loan officer whether any condition could be a problem.
Next step
When all conditions are met, you receive a clear to close.