I’m in a transaction right now where my clients (the purchasers) received a full loan approval from their lender. Meaning, the home has been appraised and the full file has gone through underwriting, and was then approved. That’s often what the lender will tell you—but there’s usually more to the story…
Loan approvals oftentimes come with conditions that have to be met. There are three types of conditions: prior to documents being sent to title, prior to the loan being funded, and prior to closing. It’s critical to know what each of these conditions are, as well as which one of the three may apply to you.
The conditions in my transaction right now are pretty typical. They consist of updated paystubs and bank statements. Also, the lender asked that the sellers sign a non-electronic contract. However, that’s a whole other blog post within itself, as electronic signatures can be an issue for some lenders.
My point with all the above is to make sure you know what conditions exist on your loan approval; and before removing your loan contingency make sure you either have met those conditions or are able to meet them.