When a loan is conditionally approved by loanDepot, it means that the lender has reviewed the borrower's loan application and supporting documentation and has determined that the borrower is eligible for a loan. However, there may be certain conditions that need to be met before the loan can be fully approved and funded.
Typical conditions for a conditional loan approval may include:
- Verification of income: The lender may need to verify the borrower's income through pay stubs, tax returns, or other documentation.
- Verification of employment: The lender may need to verify that the borrower is currently employed and has a steady source of income.
- Appraisal of the property: If the loan is secured by a property, the lender may need to have the property appraised to ensure that it meets the lender's requirements.
- Credit check: The lender may need to perform a credit check on the borrower to determine their creditworthiness.
- Documentation review: The lender may need to review additional documentation, such as bank statements or letters of explanation, to ensure that the borrower meets all the lender's requirements.
Once all the conditions for the conditional loan approval have been satisfied, the lender will provide a final loan approval and schedule a closing date with the borrower. At the closing, the borrower will sign the final loan documents and receive the funds for the loan.
