Learn the difference between conditionally approved and unconditionally approved. These are two terms that you will hear once you make an offer on a home. Don’t be confused by the meanings when the time comes to finalize your mortgage approval.
Conditionally approved means you have been approved for a mortgage once certain conditions are met. These conditions may be that you need to sell your current home, provide more documentation, pay off an account, or settle an outstanding balance.
Unconditionally approved means that you are formally approved for a mortgage without any remaining lender conditions. All required documentation have been reviewed and excepted by the lender, and you can now waive your finance condition on the purchase contract.
Basically, conditionally approved means you are one step closer to finalizing the mortgage approval. Once you have completed this final step, you will have an unconditional mortgage approval in place.