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Loan Condition - What is Mortgage Loan Condition?


Definition: Loan condition - when underwriting reviews a borrower's loan, if underwriting feels it is missing an item pertinent to perfecting the loan for the borrower, the underwriter will call for a condition to be fulfilled prior to funding the loan.

This loan condition could be anything. It could require that the borrower submit the last 12 months of bank statements to asking the borrower to find three more credit references or declaring that when the borrower deposits another $1,000 into escrow, it will fund.

Loan conditions don't always make sense.

At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

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