Conditional approval and unconditional approval are terms used to describe the stages of the home loan application process.
Conditional approval means that a lender has assessed a borrower's loan application and is willing to offer them a loan, subject to certain conditions being met. These conditions may include providing additional documentation, such as proof of income or employment, or providing further information about the property being purchased. Once the borrower has met these conditions, the lender will then provide an unconditional approval.
Unconditional approval, also known as formal or full approval, means that the lender has completed a full assessment of the borrower's loan application and is willing to offer them a loan. At this stage, the lender has fully verified the borrower's income, employment, credit history, and other relevant information, and has determined that the borrower meets all of their lending criteria.
You can learn more about conditional and unconditional approvals here.