Tips & News

What Is a Conditional Loan Approval?

Approval for a conditional loan means that the underwriter is satisfied with the financial documentation you have provided almost entirely, and you meet most of the criteria for being granted a loan or mortgage. The key factor is that there are conditions that are currently pending, and you will get financing when these conditions are met.

Before those conditions are met, your loan is only pre-approved. You will want to move as fast as possible by providing the extra information requested by the lender and get your conditional loan approval, as being late with it can potentially cost you a good deal.

If the loan you have applied for is, indeed, meant to fund a new home purchase, you can also consult your realtor and inform them about the process of getting your approval. The seller will want to know how quickly you would be able to have your loan approved, and will prefer that to a pre-approval, as you already expect.

Most Common Conditions for Getting Your Loan Approved

Examples of the most common conditions you would have to meet for getting a loan include:

• Proof about your credit score: past payments, due dates, etc.

• Additional paperwork related to your financial situation.

• Proof of your monthly income, or your family’s monthly income.

• Mortgage insurance proof.

• Having something as collateral (your vehicle, home, etc.).

Types of Loans You Can Apply for

Loans are also different, and a good mortgage agent will be able to tell you which financial product is your best fit. Depending on the type of loan you get, there are different kinds of regulations, laws, and conditions for approval.

Here are some examples of types of loans you can consider for your home buying:

• Conventional Loan: not offered or secured by the government, but by a private lender.

• Jumbo Loan: a bigger loan that usually requires a bigger down payment.

• FHA Loan: government-backed mortgage.

• VA Home Loan: Veterans Affairs Home Loans.

• Non-QM Loan: Non-qualified mortgage.

These are just a few examples of the types of financing you can get for buying a home. Make sure you consult an experienced loan officer who can explain every condition and benefit thoroughly and clearly, and help you choose what’s best for you.

Need a Loan?

If you need a mortgage contact CSMC Mortgage, our team of expert loan officers are ready to hear about your situation and suggest the best fit for you in the current circumstances. We have four branches across the state of California.

You can easily contact us online or via phone and we will be happy to present you with loan and mortgage options that you can afford. We focus our expertise on home buying, helping our clients achieve their dream house for starting a new family, relocating to a more promising area, or retiring.