What is conditional approval?

Conditional approval is often a step in the process from preapproval to full mortgage approval. If you can meet the conditions set by your lender, you will be on your way to getting a mortgage on your new home. Conditional approval means your lender may require additional materials before you're fully approved.

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.

What is a conditional mortgage approval?

A conditional mortgage approval means your underwriter – the person who works for your mortgage lender and determines whether you qualify for a loan – will likely approve your mortgage application as long as you meet certain conditions.