---
title: What is Loan Approval and Final Approval?
description: The steps required in underwriting to close the purchase.  There are several stages of a loan’s “approval,” including “conditional” and “final.”
---

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# What is Loan Approval and Final Approval?

## The necessary steps in underwriting to close your purchase or refinance.

Both loan approval and final loan approval are necessary steps in underwriting to close your purchase or refinance. **There are several stages of a loan’s “approval,” including “conditional” and “final.”** Both types are **formal loan approvals** in writing from the underwriter.

“Conditional” is a loan approval received after the underwriter’s **initial review** of an entire loan file, including current income, assets, credit, property-specific documents, and/or the appraisal report. **It is called “conditional” because the approval is dependent upon the satisfaction of all [conditions](https://www.jvmlending.com/glossary/#condition) associated with the transaction.** Depending upon the number and nature of the requested conditions, the [loan contingency](https://www.jvmlending.com/glossary/#contingency) may be lifted after conditional loan approval is granted.

**Once all conditions are reviewed and cleared, the underwriter will grant “final” loan approval, also known as the “clear to close.”** Final loan approval normally indicates that only the final signing appointment, loan’s funding, and county’s recording are required to close the purchase.

- [FAQs](https://info.jvmlending.com/knowledge/faqs?hsLang=en#main-content)

    - [Closing](https://info.jvmlending.com/knowledge/faqs?hsLang=en#closing)
    - [Getting Pre-Approved](https://info.jvmlending.com/knowledge/faqs?hsLang=en#getting-pre-approved)
    - [Post-Close](https://info.jvmlending.com/knowledge/faqs?hsLang=en#post-close)
    - [Making Offers](https://info.jvmlending.com/knowledge/faqs?hsLang=en#making-offers)
    - [Loan Products](https://info.jvmlending.com/knowledge/faqs?hsLang=en#loan-products)
    - [Mortgage Interest Rates](https://info.jvmlending.com/knowledge/faqs?hsLang=en#mortgage-interest-rates)

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