What is conditional approval?

People often confuse conditional approval with the initial mortgage approval you get to shop for a home. Loans are initially approved by a loan officer who has reviewed your income and credit information. Your information must be checked and approved before a decision can be made on your final loan application.

Is a conditional approval a qualified yes?

In short, it’s a qualified yes — but you need to take certain steps to finalize your loan. Here’s how to navigate the conditional approval process and ensure a smooth path to homeownership. What does conditionally approved mean? Applying for a loan to buy a house means meeting the standards and criteria set by a mortgage lender.

When does conditional approval come after preapproval?

It usually comes after preapproval but before you receive a mortgage approval letter. Keep in mind that getting conditionally approved doesn’t mean you’re guaranteed a mortgage. In some instances, not completing the lender’s conditions or having another issue arise could result in your home loan being denied.