A conditionally approved loan is a loan approval based on the financial and credit information that an applicant has provided, and it is subject to final verification. Final verification includes employment and income verification, and additional documentation, such as pay stubs, bank statements and utility bills, is required before the loan is completely approved.
A common misconception is that conditionally approved loans are the same as pre-approved loans. Pre-approved loans are pre-approved due to the fact that the lender has reviewed the applicant's income and credit information and has made a decision based on those findings. The borrower's information is then verified by the loan underwriter, and the loan is processed. Conditional approvals are provided by the underwriter after they have verified additional documents and income, and the borrower must meet all stipulations of the lender in order for the loan to move on to final approval.
Conditional loans are common practice in the mortgage industry. Homes must pass an initial inspection, and the property must be appraised. The lender also screens for liens or judgments on the home. If the lender is unable to accurately verify income or documentation, or finds a lien or a judgment on the borrower's record, the borrower is at a high risk for denial of the loan.Learn More
To apply for financial aid, an applicant must complete the Free Application for Federal Student Aid through the U.S. Department of Education and complete an application for financial aid at the institution of higher learning where she desires to attend. Additional forms may be required by the college.Full Answer >
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To apply for a mortgage pre-approval, a person must provide detailed information about her income and assets that is then reviewed by the lender to ascertain whether or not the applicant is in a position to repay the loan. If approved, the person applying for a mortgage pre-approval gets a commitment of a certain loan amount from the lender.Full Answer >
A loan modification is a permanent change to the terms of a loan, according to the U.S. Department of Housing and Urban Development. A loan modification reinstates a loan and offers a repayment option the borrower can afford.Full Answer >