How is a Pre Approval Different from an Approval When Getting a Mortgage

They Have Real Consequences

If you're buying a home in Pembroke Pines, you're going to hear a bunch of terms thrown around: pre approval, conditional approval, full approval, clear to close.

And if you don't know what they really mean, it's easy to assume you're further along in the process than you actually are.

Each of these milestones tells you (and the seller) how close you are to the finish line and what can still go wrong.

So here’s a plain English breakdown of what happens at each step.

Mortgage Milestone Breakdown

Think of the mortgage process like a relay race. You don’t just go from offer to closing in one step. There are key checkpoints along the way, and each one tells you how close you are to actually getting the keys. Here’s what each stage means, and why you (and the seller) should care.

Pre Approval
This is the starting line and it means a lender has looked at your basic financials (like income, credit score, and debt) and says, “You look good for a loan up to $X.” But it’s based on self reported or soft verified info. It’s useful for shopping, but it’s not a promise.

Conditional Approval
Now we’re getting serious. At this stage, your lender has reviewed your full application and documentation: pay stubs, bank statements, tax returns, and says “You're approved, IF you meet these remaining conditions.” Those conditions might include verifying employment, explaining a bank deposit, or clearing title on the property. This is where underwriters get involved.

Full Approval (a.k.a. Final Underwriting Approval)
You've met all the lender’s conditions. Your financials are locked in, and you’re officially approved for the loan but the lender still has one last job: reviewing the final title work, homeowners insurance, and the closing disclosure. Nothing big should be outstanding at this point.

Clear to Close (CTC)
This is the finish line. Everything has been approved: the loan, the property, the title, the insurance, and the lender has given the green light to generate closing docs. You’ll usually close within 1–3 days of hitting this milestone.

What I’d Tell a Friend

Don’t overthink the lingo but do pay attention to where you are in the process.

Pre approval is just your ticket to start making offers. The real action starts once you’re under contract.

That’s when the lender moves your file into underwriting and issues a conditional approval which is basically a list of everything they need from you to give final loan approval. It’s not a red flag, it’s just the next step. How fast you respond, and how complete your documents are, can make or break your timeline.

So once you’re under contract, stay on it. Answer your lender, stay organized, and push to clear conditions as quickly as possible. That’s how you hit your loan approval deadline and avoid last minute stress before closing.

And when you hear “clear to close”? That’s your cue to stop refreshing your inbox and start planning your move.