What does 'conditional approval' actually mean?

What does conditional approval actually mean?

You received conditional approval, which means the underwriter agrees to approve your loan once you provide specific documents or meet certain requirements they've outlined. The underwriter has reviewed your application and financial profile and determined you qualify for the mortgage, but they need additional verification before giving final approval.

Conditional approval works like a checklist. The underwriter identifies missing pieces—maybe they need updated pay stubs, bank statements, or clarification about a deposit in your account. Each condition addresses a specific requirement for loan approval. Most conditions are straightforward documentation requests that borrowers can satisfy quickly.

Your loan officer will walk you through each condition and explain what documentation to provide. Common conditions include verifying employment, explaining large deposits, or providing updated financial statements. Once you submit all required items and the underwriter reviews them, you typically receive final approval.

Some conditions may require coordination with other parties—your employer might need to verify employment, or you might need a letter from your bank. Work with your loan officer to understand timing for each condition, especially if any require third-party responses. Most borrowers move from conditional approval to final approval within a few days to a week, depending on how quickly they can gather the requested documentation.