Definition
Conditional approval says you qualify but must satisfy specific conditions first—verify employment, provide updated bank statements, explain credit issues, or get a satisfactory appraisal. Once conditions are met, you'll move to clear-to-close. This is normal progress, not a problem.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Underwriters issue conditional approval after reviewing the initial application but before clearing the loan to close. Common conditions include verification of employment, updated bank statements, explanation of credit issues, or satisfactory appraisal. The borrower must satisfy all conditions for the loan to proceed.
Pro Tip
Respond promptly to conditional approval items; delays in satisfying conditions can jeopardize the loan or closing timeline.
Example
An underwriter issues conditional approval pending verification of employment and satisfactory appraisal of the property within acceptable value range.