What Does Conditionally Approved Mean? Conditional loan approval means that your mortgage underwriter is mostly satisfied with your mortgage application. They are willing to approve your mortgage so long as you can meet their pending conditions.

Can a loan be denied after conditional approval?

In short, yes, a loan can be denied after receiving conditional approval. This usually happens when the borrower doesn't provide the documents that are required. In addition, the loan may be denied if the borrower doesn't meet the underwriting requirements.

Is conditional approval a good thing?

Things that are looked at during the first screening phase include your credit history, your personal debt, and your income. As your application moves on to the next phase, it will be looked at in more detail. Getting a conditional approval is definitely good news but you should not start to celebrate just yet.