If you think your new mortgage loan is official once you’ve signed your closing papers, you might want to rethink that. Sure, you’re pretty darn close to a brand-new loan, but you’re not completely there. When your loan is officially approved by the lender and closing documents are ordered, there were several stages your application went through before papers could be ordered.
When your loan officer contacts you and lets you know your loan has been approved, it’s very possible there are still some outstanding conditions attached to your approval. Your loan could be conditionally approved. This simply means there are some additional things that still need to be addressed. These additional things are called ‘loan conditions.’ The more important conditions are those that need to be fixed before closing papers can be ordered.
To learn more about mortgage loan funding and the home buying process, visit the SCOOP! Blog
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