What does clear to close mean? 

“Clear to close” (CTC) is like the ultimate green light in the mortgage world. Hitting that milestone means your mortgage lender has gone through your financial stuff—income, assets, credit, and property appraisal—and given it all a big, satisfying thumbs up. All the loan conditions are met.

What do I have to do to get to clear to close status?

Before you hit the jackpot with “clear to close,” there’s a lot going on behind the curtain. Here’s a look:

1. Underwriting deep dive: The underwriter is checking your income, credit history, assets, debts, the whole nine yards. They’re making sure you can safely handle this mortgage and that everything looks solid.
2. Property appraisal: An appraiser checks out your future home to make sure it’s actually worth the asking price. The lender’s not about to let you  hand over cash if the property isn’t worth it.
3. Title check: The title company digs into the property’s past to make sure there’s no drama—like unpaid taxes or shady ownership claims—that could hurt you and pull your ownership of the home into question.
4. Final conditions: Sometimes, the underwriter needs more receipts—maybe a recent pay stub or an explanation for that big deposit in your account. No biggie, just tying up loose ends.
5. Conditional approval: You hand over the last of what they need, the underwriter gives it a once-over, and if everything looks good, you’re on your way.

Once all this is squared away, you’ll get that “clear to close” stamp of approval, and it’s game on for the final stretch of buying your home!

What happens after I am clear to close?

You’re almost there, but don’t take your foot off the gas yet! You’ve still got some things to tick off—like reviewing the Closing Disclosure, wiring over those closing costs, and signing the final paperwork.

What is a closing disclosure?

This is your play-by-play on what the  loan terms, interest rates, monthly payments, and closing costs will be. You’ll need to check it out and give it the thumbs up at least three business days before your date of closing. Why the three days? This is all part of the Consumer Financial Protection Bureau (CPFB) regulations that went into effect after the 2008 financial crisis. It’s important everyone has time to read and ask questions about this doc, so that there’s no surprises down the line. 

Once I am clear to close, when can I close on my home?

When you’ve got that “clear to close” green light, the lender will lock in your closing date—usually within a few days, depending on how things are moving. But here’s the thing: Here at Tomo Mortgage: we close on time 98% of the time. That’s not just talk, it’s a promise. When we say you’re getting the keys on a certain date, you better believe that’s the day you’ll be walking through your new front door. The rest of the mortgage world only closes on time about 40% of the time.

Can anything change after clear to close?

Yep, things can still shake up even after you’re “clear to close.” While it’s rare, life happens. Here’s what could go down:

1. Financial Changes: If you suddenly rack up debt, lose your job, or make a big purchase, your lender might hit pause. They could reassess your financial situation and, worst-case scenario, pull the plug on your loan.
2. Credit Check: Some lenders do a final credit check right before closing. If your score tanks or there are new red flags, it might throw a wrench in the works.
3. Paperwork Drama: If there’s a mistake or missing info in your documents, it could delay the closing. Double-check everything to keep things smooth.
4. Property Issues: If something crazy happens to the property, like a natural disaster or damage during the final walkthrough, it could impact the deal.

Conclusion:

In short, “clear to close” means you’re almost at the finish line with all approvals in place, but you’ve still got a few steps to cross off before you can officially call that new house yours and you’ve got the keys in hand. 

Ready to roll with a mortgage company that’s all about keeping things on track? Let’s talk.

If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.