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Conditional approval in the homebuying process, specifically in the mortgage loan process, is Step 4 where a lender has preliminarily agreed to provide a loan to a borrower, but certain conditions must still be met. These conditions typically relate to the verification of financial information, property appraisal, and other factors. Once these conditions are satisfied, the loan moves closer to final approval, and the borrower can proceed with the home purchase with increased certainty.

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