To reiterate, the loan commitment is conditional, so the loan commitment letter does not constitute official approval of the loan. Official approval can only be granted after the two conditions are met.
Is a conditional approval the same as a commitment letter?
Though the word conditional sounds misleading. The conditional approval, or Loan Commitment Letter as it is sometimes called, is the highest form of a guarantee a lender can give.” Receiving this letter means your approval is based on having already been reviewed by an underwriter.
What does it mean when a loan is approved?
Related Definitions Loan Approval means an approval for a loan given by the Originator to a prospective Borrower and includes an approval for the sale of an Approved Mortgage to the Trustee.
Can you get denied after conditional approval?
In short, yes, a loan can be denied after receiving conditional approval. This usually happens when the borrower doesnt provide the documents that are required. In addition, the loan may be denied if the borrower doesnt meet the underwriting requirements.
What is the next step after conditional approval?
Unconditional approval is also known as formal approval, and it is the step that comes after conditional approval. When you receive unconditional approval, it means that the underwriter has received and verified your information.
How do I know if my loan is approved?
How do you know when your mortgage loan is approved? Typically, your loan officer will call or email you once your loan is approved. Sometimes, your loan processor will pass along the good news.
Does clear to close mean I got the house?
The Bottom Line: Clear To Close Means Youre In The Home Stretch. Being clear to close isnt the final destination for your loan, but most home buyers can look forward to a closing date right around the corner.