Clear to Close! But, What Does That Mean?

You've given the underwriter your social security number, provided bank statements and explanations for every deposit to your account for what seems like a period of over ten years, emailed a thousand pages of tax returns, W2’s and paystubs, you've been asked to provide a blood sample and promise your first born child… but now, FINALLY,  your loan is CLEAR TO CLOSE! So, what exactly does that mean?!

Three Magic Words!!

Clear to close is one of the final stages before your loan is funded. CTC means that the underwriter has reviewed and approved all necessary documents, and you've passed with flying colors. In other words…the lender is ready to show you the money!

Along with the CTC, your lender will send you an Initial Closing Disclosure (CD) which will provide you with detailed information regarding your closing costs and financing terms. Federal regulations stipulate that you must wait three business days to sign your final loan documents, once you have signed the Initial CD and agreed to the terms. The lender will work with all parties to schedule your closing, which usually happens at the title company or a closing agent will come to your home if you prefer.

Closing Day

On the day of closing, you may be required to bring a cashier's check for your down payment and / or closing costs, or confirmed a wire transfer for the funds. You will also need proper identification, such as a drivers license.

At the closing table, you will sign all your final mortgage documents. Closing a mortgage should come with no surprises, but please be sure to review all documents in their entirety, and ask questions as they arise.

If you're refinancing your primary residence, you'll also get a notice of your right to rescind or cancel the transaction within three business days.