Conditional approval is a stage in the mortgage application process where the lender is mostly satisfied with your loan application but requires you to meet certain additional criteria before you can be fully approved. It means that the lender is willing to approve you for a home loan if you meet specific conditions they specify. Receiving conditional approval on a mortgage makes a stronger case for your application than prequalification alone, but it is not a guarantee that your mortgage will be approved. Instead, it means the lender is willing to loan you a specific amount of money if you can meet certain criteria. Common conditions to meet include providing more financial details, giving more information to verify employment, and obtaining homeowners insurance. Conditional approval occurs near the end of the mortgage application process, after you’ve made an offer and submitted your loan application, but before final approval. If you’re unable to satisfy the conditions set forth by the lender, you could be denied a mortgage.