What exactly does conditional approval mean?

[Lovelygal31]

My loan officer says that I should receive my conditional approval by Tuesday.

I've sent all the documents in since the beginning of my application (w2, tax return, etc). The only new thing they requested from me was a signed form so they can request for my tax transcripts.

What does conditional approval mean? Did UW look at my file?

I'm so confused because appraisal isn't even done yet.

Thanks.

[Jnbmom]

It means basically that your loan application has been approved condtionally, that means that you have moved from the first application phase. The mortgage company who makes decisions regarding loan applications, or underwriter, has reviewed your application and found nothing that would cause the lender to turn you down.

[homeloanexpert]

You are confused because your Loan Officer has clearly not done their job. Once your loan is approved by the lender's Underwriter, you should be sent the approval with conditions. Your LO should then go over those conditions and throughly explain all aspects of the approval so you are not confused.

My suggestion is to pick up the phone and call your LO and have them do precisely that. As far as your IRS Transcripts, we lenders are required to validate your income with a 3rd party by means of the IRS Form 4506-T. Unless you are self employed or you are a saleperson and 25% or more of your income is derived from commissions, my company is only required to validate your W2s not 1040's (although many lender still require validation of your 1040's). FHA, VA, and Conventional Loan Programs only require W2s to be validated.

Best Wishes!