An additional document or piece of information required by the underwriter to finalize a loan's approval.
A “condition” is either an additional document or piece of information required by the underwriter to finalize a loan’s approval according to federal lending guidelines and/or investor overlays. The loan’s approval is contingent upon satisfying all conditions at a certain point of the closing process.
Conditions may be needed prior to final loan approval (“PTAs” required earlier during the closing process) or prior to funding the loan (“PTFs” required later during the closing process). The loan’s approval is contingent upon satisfying “PTAs,” and the loan’s funding is contingent upon satisfying “PTFs.”