What does “Conditional Approval” and “Clear to Close” Mean?

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A Conditional Approval is like a promissory note from the mortgage lender that they will approve the loan/issue a Clear-to-Close if the borrower/buyer can clear all of the conditions that the mortgage underwriter is requesting. The Conditional Approval guarantees the loan will be cleared to close only if the conditions are met. Common conditions include providing updated copies of bank statements, verifying employment, and providing proof of mortgage and/or homeowners insurance.


A Clear to Close is the “Final Approval” and is issued when the mortgage loan has been completely approved and the mortgage lender is ready to fund the loan.


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