The general public remains confused as to what the bank letters mean when trying to obtain financing for a mortgage loan. Please understand you are not approved for a mortgage loan until all your paper financial documents are submitted and evaluated by the bank's underwriting department regardless if the bank letter says pre-qualified or pre-approved. Good luck to you!
Yes, a Conditional Approval means the loan is approved subject to additional conditions you must provide or meet to the satisfaction of the Underwriter. Typical conditions range from the appraisal to be completed, to you providing a current bank statement and paystub, to a satisfactory title search, and miscellaneous other items.
You must provide the documents your Lender has requested on the Conditional Commitment in a timely manner. You will find the list of items you must provide on the section of the loan commitment that says, "Conditions to be provided prior to closing."
Your Loan Officer should have explained in detail any and all conditions on your approval. Further, your Loan Officer is required to discuss with you the terms of your loan such as rate, term and fees associated with closing. For your Loan Officer to simply say, "You are Conditionally Approved," without the appropriate explanation is an egregious omission.
Trevor Curran NMLS #40140