Conditional approval after "initial underwriting".

[Anonymous]

Last week my file went to underwriting for "initial approval" per my LO. Today I got told my loan has been "conditionally" approved and that processing would be reaching out on any items needed for full approval. What type of info may they request and how long do they take to reach out usually (ask because my LO hasn't answered this yet)? How close am I to closing really?

[ShanetheMortgageMan]

The conditional approval lists the remaining items the underwriter needs in order to issue the final approval, it could be as simple as just the appraisal report or could be much more complex with items needed specifically for your situation.  Usually when I get a conditional approval I'll go over it with my processor and figure out which one of us is going to obtain what, then I'll reach out to the client and let them know what items are needed from them & what other remaining items we are gathering without their assistance.  All that is normally done the same day as getting the conditional approval.  Usually from the time you sign the initial disclosures until you are closing is about 30 days, but I believe you are buying new construction so your closing will also depend on when the builder completes the home.

[Anonymous]

Our cd is on the 11th of Jan. Home is newly built and completed. How often do you see a conditional approval? If the application is good no issues when it initially gets sent to underwriting do they usually just issue a final approval or a conditional regarless?

[sxa001]

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@Anonymous wrote:

Our cd is on the 11th of Jan. Home is newly built and completed. How often do you see a conditional approval? If the application is good no issues when it initially gets sent to underwriting do they usually just issue a final approval or a conditional regarless?

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Conditional Approval is a normal part of the process, it means things are moving forward.  You may certainly get some requests for stuff, but again no need to panic, you will usually get your clear to close a few days before closing once all the final approvals are done. 

[ShanetheMortgageMan]

Majority of the time there is a conditional approval, most often just for clerical mistakes (something the appraiser missed explaining, insurance company ommitted a middle initial, etc.) but occasionally there can be more significant items (the list is endless, including a bad appraisal, issues with title, etc.).  A lot will depend on how well your processor and loan officer documented everything the underwriter needs to know, a well put together file will result in very few if any conditions and probably no additional help from you required.  From the info you've supplied in previous posts it sounds unlikely there will be significant items.

[dragontears]

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@sxa001 wrote:

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@Anonymous wrote:

Our cd is on the 11th of Jan. Home is newly built and completed. How often do you see a conditional approval? If the application is good no issues when it initially gets sent to underwriting do they usually just issue a final approval or a conditional regarless?

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Conditional Approval is a normal part of the process, it means things are moving forward.  You may certainly get some requests for stuff, but again no need to panic, you will usually get your clear to close a few days before closing once all the final approvals are done. 

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Agree with @sxa001 100%. Conditional approval is normal. What exactly the conditions are varies and could be things that you are not responsible for doing (i.e. things your lender needs to provide). For example, my last purchase the conditions were: provide copy of home owners insurance, copy of earnest money check and a letter of explanation for credit pulls. My LO already had the first 2 and sent me the letter to sign. 

If you need to do anything about the conditions your lender will tell you. 

[sxa001]

To add some examples I had a few: 

1) Provide letter of explanation for address variance (two places I rented in 2012/2013, they wanted the letter to state the dates I lived there and if I had any ownership interest in the properties) 
2) Provide copy of flood policy 
3) Sign notice of special flood hazards 
4) Provide updated bank statements 

Only issue I had was that after doing the notice of special flood hazards they didn't like that my signature was a digital signature so I had to print/scan a copy. 

[Anonymous]

Interesting. Been abit over 24 hours now haven't heard from processing and my LO just said "once they review all the conditions they will send you an e-mail of anything needed". He couldn't give a timeframe. Were just in limbo now I guess until we hear back which is weird since our close date on our contract is right around the corner. 

[JVille]

Normal to conditionally approve subject to Appraisal, Title Report, Fire Ins. and small housekeeping items. Did you provide copies and paper trail on all moneys given to realtor or builder? as listed above updated bank stmts, paystubs and letters of explanation for various things on Credit report. This is all normal.

this is a Holiday weekend and you are likely not going to hear a thing until Monday sometime. Have a great New Years and Happy dreaming bout your new home!