Question:
“Hi Gary. I’m selling my home and my agent told me that my buyer just got what she called ‘loan approved with conditions’. My agent said she doesn’t know exactly what that means and told me not to worry about it. What does that mean?”
Answer:
Yours is a simple question. And if your agent doesn’t know the answer, that’s scary.
“Loan approval with conditions” means what it says: The bank has approved the loan provided certain conditions are met.
You might say there are 2 kinds of conditions: Housekeeping items vs. “real” conditions.
Housekeeping items are nothing to worry about. They include things like:
- Borrower to sign tax return
- Need proof of insurance
- Need copy of preliminary title report or escrow instructions
But “real” conditions can be cause for concern. They include things like:
- Borrower to sell car (I’ve actually seen this!)
- Borrower to provide proof of additional funds for down payment
- Borrower to explain late payments on various bills
A good loan representative takes care of most possible “real” conditions up front so they’re not a problem.
So be sure you use a good “loan rep.” If you need one, I know a great one. Just call me at 858-457-KENT.
