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What Does “Approved With Conditions” Mean?
“Approved with conditions” means you are approved. The conditions are a short list of follow-up items the underwriter needs before your loan can move to the final stage, and they are almost always small. Here is what actually happens in underwriting, how long it takes, and what a condition really looks like.
Reviewed by Glenn Groves, Mortgage Broker, NMLS #1124642. GTG Financial, Inc. NMLS #1595076. Serving Santa Rosa and Sonoma County, CA.
TL;DR: WHAT’S IN THIS POST
- A human underwriter reviews your file
- Turnaround runs from a few hours to about five days
- Purchases take priority over refinances
- Almost every approval comes with conditions
- Conditions are small clarifications, not rejections
What underwriting is actually doing
Once your file is complete, we submit the loan to underwriting. At the lender we are brokering to, a human underwriter goes through the file and all the different things you provided us, bouncing them off those guidelines and making sure you actually are approved.
This is the part of the process Glenn calls the dark side of the moon. It can go quiet for a stretch, and that quiet is not a bad sign. It is simply someone reading carefully.
“This is what we like to kind of say is the dark side of the moon.”
Glenn Groves, GTG Financial
How long underwriting takes
Some lenders are going to turn it around in 2 or 3 hours. Some of them may take five days. That will depend on how complicated your file is, what type of file it is, what type of loan product, and whether this is a refinance or a purchase.
Purchases always take priority at lenders, because you are on a contractual date you are trying to hit. So do not be surprised if a refinance takes three or four days to come back. That is normal.
| What you might think | What’s actually true |
|---|---|
| Conditions mean I was denied | You’re approved, pending a few follow-up items |
| Something is wrong with my file | Almost every approval comes with conditions |
| Silence means trouble | Underwriting is simply a careful read |
| My refinance is stuck | Purchases are prioritized for contract dates |
What a condition actually looks like
We will let you know when you are approved with conditions. Almost always there is going to be some sort of condition where a lender wants to know an explanation of some sort of inquiry on a credit report. Why does your driver’s license address not match up with your pay stub? Or we need an updated bank statement, because the one we have is 30 days old.
Just little things. None of these mean the loan is in trouble. They are the underwriter closing the last few gaps so the file is airtight.
“Just little things. The key is, you’re approved, as long as you satisfy these following conditions.”
Glenn Groves, GTG Financial
Where underwriting fits in your loan roadmap
Underwriting is Stage 9 of the loan roadmap, after your appraisal and just before clear to close. See the full GTG loan roadmap to know every step before it happens.
Whether you are buying in Santa Rosa, Sonoma County, or anywhere in California, knowing that conditions are routine takes most of the fear out of this stage. When you are ready, you can get pre-qualified online. For a neutral overview, the CFPB’s guide to the mortgage process is a helpful resource.
Want a lender who tells you what is coming? Talk with Glenn or request a quote.
Frequently asked questions
What does approved with conditions mean?
It means the underwriter has reviewed your file and approved your loan, subject to a short list of follow-up items. You are approved as long as you satisfy those conditions.
Is approved with conditions bad news?
No. Almost every approval comes with conditions. They are usually small clarifications, such as explaining a credit inquiry or providing a more recent bank statement, not signs that your loan is in trouble.
How long does mortgage underwriting take?
Anywhere from about two or three hours to roughly five days, depending on how complicated your file is and what loan product you are using. Purchases are prioritized because they are tied to a contractual closing date.
What is a common underwriting condition?
Typical examples include an explanation for an inquiry on your credit report, a driver’s license address that does not match your pay stub, or an updated bank statement because the one on file is more than 30 days old.
Glenn Groves NMLS #1124642 / GTG Financial, Inc. NMLS #1595076 / Equal Housing Opportunity / Not a commitment to lend / CA DRE #02029711. Loan terms and pricing vary by borrower and situation. nmlsconsumeraccess.org
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