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Sambo, Home Owner in Surprise, AZ

Loan has conditions! what doesthis mean. i am re-fi and the lender said i am approved with "Loan has conditions! he did not explain what this

Asked by Sambo, Surprise, AZ Sat Apr 14, 2012

means.

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This means the underwriter has done the initial review of your file and you have a Conditional Loan Approval (CLA).

That means the loan is approved as long as certain conditions are met. A good loan officer will actually go over that list with you and outline what has already been cleared, what is left and who is responsible for those items.

If I were you I would ask your loan officer to go over that CLA with you ASAP.
0 votes Thank Flag Link Sat Apr 14, 2012
Hi Sambo, I agree it would be a good idea to follow up with the question of whether any of the conditions are something you need to supply. Ideally you'd expect them to tell you, but if they don't, please just ask. Once an underwriter has reviewed a file they issue either a Conditional Loan Approval - meaning there are Prior to Doc conditions or Prior to Funding conditions. Prior to Doc conditions mean something has to be done before your loan docs can be created. And they aren't always conditions from the borrower. Some are in house conditions - credit refresh, for example - or from title - updated closing protection letter.
Prior to Funding conditions have to be in the file before funding, but don't delay signing your loan docs. If your loan is on your primary home, they'll have 3 days after you sign to get those done.
But do find out if any of them are things you need to supply.
And glad you could refi, many are stuck in this market.
Best to you, Catherine
0 votes Thank Flag Link Sat Apr 14, 2012
Sambo, you need to call your lender to find out what conditions need to be met prior to closing.
0 votes Thank Flag Link Sat Apr 14, 2012
Typical conditions would include satisfactory:

1. Employment;
2. Credit score;
3. Source of funds;
4. Appraisal;
5. Survey
6. Chain of title
0 votes Thank Flag Link Sat Apr 14, 2012
If these are conditions left after an Underwriter has seen the file, run from this Loan Officer ("LO") as fast as you can! The duty of a good LO, along with her or his Processor, is to put together a loan package which comes back from the Underwriter with NO conditions; next best is one where all conditions are purely administrative, needing nothing more from your Borrower. And, yes, as others have mentioned, a good LO would have told you what "Conditons" means and which, if any, you need to work on. I would give them a call as Sonny suggests and get the peace of mind you should have with a good LO. Good Luck.
Flag Sat Apr 14, 2012
This is a good thing. It just means you need to supply a few more things to the under writer. Like an updated paystub or bankstatement.
0 votes Thank Flag Link Sat Apr 14, 2012
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