Home Buying in 13021>Question Details

Chantel82, Home Buyer in 08823

DOES CONDITIONAL APPROVAL MEAN U ARE APPROVED, AFTER U MEET THE CONDITIONS ON A FHA HOME LOAN?

Asked by Chantel82, 08823 Mon Nov 7, 2011

THE SELLER HAS ALREADY PACKED UP AND LEAVING THIS WEEK I HOPE EVRYTHING GOES AS PLANNED I WOULD HATE FOR THEM TO HAVE LEFT FOR NOTHING.

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7
Many loan officers in my area issue preapproval letters without reviewing any support documents. I have chatted with agents all over the country and this seems to be a problem everywhere. If you furnished everything during the initial process you should be fine. If not that raises the risk level.
1 vote Thank Flag Link Tue Nov 8, 2011
Chantel,
As long as nothing changes and you can meet the conditions requested, the loan usually closes. Whatever you do, don't apply for any other loans or run your credit card balances up.
1 vote Thank Flag Link Mon Nov 7, 2011
All approvals are conditional approvals. Based on the information given you are approved. New information is the only thing that could derail your train.
0 votes Thank Flag Link Tue Nov 8, 2011
Yes, if the conditions are met, approval will follow; discuss the conditions with your loan officer and any other questions/concerns you may have.
0 votes Thank Flag Link Tue Nov 8, 2011
Today, the lenders have many more requirements that must be met for you to obtain financing, as given by the federal government. In the past, a pre-approval letter was given without much responsibilty for the loan officer, yet today, they are much more careful to supply accurate information for you and on your behalf. In this day and age, a pre-approval letter carries much more weight than it has in the past.
0 votes Thank Flag Link Tue Nov 8, 2011
Conditional approval means just that, the requested loan is subject to the bank receiving your tax returns, income/debt written information and a landslide of other financial documents before going into underwriting. Once obtained, the bank's underwriting department will then evaluate your legitimate records for approval or not. Will assume the seller's are aware of your "conditional' approval status and made the choice to move anyway. This was their choice not yours---not your problem if funding falls through.

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!
0 votes Thank Flag Link Tue Nov 8, 2011
Good morning Chantel82,

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
Web Reference: http://tcurranmortgage.com
0 votes Thank Flag Link Tue Nov 8, 2011
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