You’ve been working on your loan application and providing documents to your mortgage lender when they finally notify you that you have been “Cleared to Close”.
Clear to Close is a mortgage term indicating that a loan application has passed through all the necessary approval processes and is ready to be finalized for the closing process.
Here’s a detailed breakdown of what it means and its implications:
- Approval Completed: All underwriting conditions have been met. The underwriter has reviewed all required documentation, such as income verification, credit reports, appraisals, and other necessary paperwork.
- Final Review: The loan file has undergone a final review to ensure that all conditions and contingencies have been satisfied.
- Ready for Closing: Your mortgage loan has been given the green light for the Closing Process to proceed.
You will be getting a Closing Disclosure outlining the terms and costs associated with your new loan. Review this information and ask your mortgage lender any questions you may have as they will be drawing your final loan documents based on this information.
Once your loan documents are drawn, a notary will be coordinated to complete the loan signing. At the signing, you will receive wire instructions on where to send your funds to close (always double-check the wire instructions with your escrow officer).
If you have any questions, please feel free to reach out to discuss with one of our Mortgage Loan Originators at (760) 930-0569.
