Principle
Share milestones, not private underwriting
Consent
Required before confidential disclosure
Status language
Standardized and factual
Goal
Fewer surprises before deadlines
On this page
Why 'how is financing going?' is a poor status system
Vague status language causes two problems. First, 'looks good' or 'approved' can be interpreted as stronger than the actual lender position. Second, answering the question with detailed income, credit or lender notes can disclose more of the borrower's private information than the Realtor needs.
The solution is a standardized milestone vocabulary paired with written client consent.
The recommended mortgage status vocabulary
Each label answers a process question without pretending to guarantee closing.
- Referral received — client contact information received; mortgage review not yet complete.
- Consultation complete — mortgage goals and next-document steps have been discussed.
- Documents outstanding — file cannot yet move to the intended underwriting stage.
- Mortgage review complete — borrower analysis completed at the current information level; no property-specific approval implied.
- Submitted to lender — application sent; lender decision pending.
- Conditional lender approval — lender issued approval subject to conditions.
- Material conditions outstanding — one or more conditions could still affect the requested financing.
- Lender conditions substantially complete — material mortgage conditions are satisfied or in final processing, subject to lender funding requirements.
- Mortgage instructions sent — lender has issued instructions to the closing lawyer.
- Funded/closed — mortgage funds and real-estate closing completed as confirmed through the closing process.
Plain-language update templates
Use factual language that separates progress from certainty. Example: 'The application has been submitted to the lender and we are awaiting the lender's decision. No final property-specific approval should be inferred yet.'
For conditions: 'The lender has issued a conditional approval. We are working through the remaining conditions. One or more material conditions remain outstanding, so please do not treat this update as confirmation that financing is complete.'
For closing: 'The lender has sent mortgage instructions to the buyer's lawyer. The lawyer and borrower still need to complete the legal closing process and lender funding requirements.'
When the status should trigger a phone call, not another email
Escalate when a financing-condition deadline is approaching with material issues unresolved, the appraisal is short, the lender changes the amount or terms materially, the sale needed for bridge financing is at risk, mortgage instructions are missing near closing, or any fact suggests the buyer may not be able to close. Those are coordination events, not routine status updates.
Realtor + mortgage coordination
Have a client who needs a mortgage review?
Use the Realtor referral pathway for a consented introduction. Do not upload tax returns, bank statements, credit information or other borrower financial documents through the referral form.
Refer a clientFrequently asked questions
Can a mortgage broker tell the Realtor the client's credit score?
Not as a routine status update. Confidential information should only be disclosed where authorized and necessary. Milestone-level communication is usually sufficient for transaction coordination.
What does 'conditional approval' mean?
It means the lender has approved subject to stated conditions. Those conditions can range from routine to material, so the label alone should not be treated as unconditional funding certainty.
When can the Realtor be told the mortgage is funded?
Once the funding/closing process has actually completed or the appropriate closing professional has confirmed completion—not merely because mortgage instructions were issued.
Primary sources
Mortgage, real-estate and new-home rules can change. These resources are educational and do not replace legal advice, your brokerage policies, a lender decision or a property-specific mortgage assessment.