The Two Loan Letters That Move You Toward Closing
After the appraisal is completed and underwriting has thoroughly reviewed your loan file, your lender issues two formal approval letters at different points in the final approach to closing. Both carry specific contractual deadlines written directly into the Hawaii purchase contract — deadlines that can have real consequences if missed.
Most buyers don't realize these letters have hard delivery dates built into their contract until their Realtor is chasing their lender a day before the deadline. Stay in close, proactive communication with your lender throughout this phase. Every document they request deserves same-day attention — their processing time starts when they receive it, not when you get around to sending it.
Conditional Loan Approval (CLA)
The CLA is typically due to the seller approximately ten days before your scheduled recording date. It confirms that your lender is prepared to fund the loan subject to the satisfaction of remaining conditions — usually routine items such as a final bank statement, confirmation of homeowner's insurance, or a minor documentation clarification.
This letter is meaningful to the seller because it signals that financing is substantially complete and on track. Missing the CLA deadline is one of the few points in the transaction where the seller may have contractual grounds to cancel. Do not let this deadline pass without the letter in hand.
Final Loan Approval (FLA)
The FLA is typically due approximately five days before recording. It confirms that all conditions have been satisfied and the loan is fully approved — no remaining contingencies, no outstanding items. From the seller's perspective, this is the definitive signal that the transaction will close as planned.
Once the FLA is delivered, attention shifts to the Closing Disclosure review, the final walk-through, and coordinating your closing funds. You're in the final stretch.