Waiting is no fun, especially when it involves the financing for a home you love - in the midst of an extremely competitive housing market! The mortgage experts at Simplicity understand the stress of purchasing a home and we know what is needed to get your loan approved quickly - often in 1 day!
What is conditional loan approval?
Once you come to a bilateral agreement with a seller (or make the decision to refinance) the next step is to begin the mortgage process. Conditional approval is one of the initial steps of the process. To achieve conditional approval, a variety of documents must be collected from the borrower and submitted to the lender. These are documents that verify who you are, your credit score and history, your current employment/income and your debts to income ratio. Sometimes borrowers provide sufficient documentation when going thru the pre-approval process, others prefer to wait until they are under contract. The mortgage broker will collect and review the documents before submitting everything to the loan underwriting department as one complete package.
The loan underwriter will review all the borrowers documentation to determine if the borrower meets the requirements for the requested loan. They will create a list all other outstanding items that must be collected or verified prior to the loan being able to close. The underwriter will return a letter of Conditional Approval and a list of conditions that must be met prior to the loan closing.
How long does conditional approval take?
The timeline from submittal to conditional approval can very, but a knowledgeable broker can make all of the difference. The brokers at Simplicity have extensive experience submitting loan packages and know specifically what is required by the lenders. They can quickly check the borrowers documentation for anything that could create an issue in the approval process and work with the borrower to correct it prior to submittal.
Ready for a quick turnaround on your loan?
Here at Simplicity Mortgage, we routinely receive one day loan approvals for clients. This week every loan we have submitted has had a one day approval - sometimes even the same day! This can make all the difference if the sellers are looking to close as soon as possible or you need to complete your refinance quickly. Once the conditions are received, we can get to work immediately on any additional requirements and be on our way to the closing table with the final loan approval, "clear to close". Spoiler Alert: We can also move a loan from submission to CTC in 2 weeks or less, but we'll save those details for another post...