what is the difference between these two approvals

[luckyashes04]

I am just wondering what the difference is between an automated approval and a conditional approval? I was told by our LO today that she SHOULD have our conditional approval this afternoon, however I'm not sure if it was ran through the automated approval or not. I would ask her but I think she's getting annoyed with all of our questions this week.

[Mike_B03]

If I understand it correctly, conditional approval comes from running the information through "automated approval", which is another term they use for the automated computer underwriting software they use. So the LO is just saying that if the automated system gives the go-ahead, then you should have your conditional approval later today. In other words, the LO is just guessing that everythign should go through fine but hasn't actually done anything with it yet.

[tooleman694]

Automated approval means nothing, conditional approval means it has passed the underwriter. Once you get that, its all down hill.

[MovingForward_2012]

+1 on what tooleman said. Conditional approval means that your file was approved by the board of underwriters...real people that sit in a room and mow over your financial data. This is the second approval. The last approval is made by one UW and is FINAL. Automated approval is just a preapproval versus pre-qualification.

[DallasLoanGuy]

automated is run by the loan officer. it is just uw guide

conditional approval is after the uw approves it.... and they usually ask for a couple of things

[luckyashes04]

Is it normal for a LO to say " we will have your conditional approval out today" and 2 days later we still don't have it? I'm really stressing out.

[MovingForward_2012]

Yes it is. There were several instances where they said I would get something by a certain date but didn't. All part of the "fun"!

[luckyashes04]

Of course I'm thinking worst case....they are having a hard time finding a way to approve us ( I doubt this is the case lol) she is giving me an ulcer. Lol

[JM-AM]

lol at part of the fun...

Yes many different things beyond your control delay things... The biggest is they are busy, but usually have a turn around time of 2-4 days, but it can be longer.

[violetsmom]

MTH... I was told that the home office has 72 hours after submission to their system to give their response. When we did this back in Dec my LO did email me that we were approved through underwriting a few days after we got through automated. I did not get an actual conditional approval letter until several weeks later though