Step 26 to Buying a Home: What Does "Clear To Close" Mean?

We're almost to the finish line!

Very soon we should receive what’s called the Clear to Close from your mortgage lender and underwriter. This is a very exciting message to receive! So what does "Clear to Close" mean?

Clear to Close means that the lenders and underwriters have looked at all of your documentation, from your loan application to the purchase contract on your home, the appraisal to your employment verification, your bank account statements to your tax transcripts and everything in between, and the have approved your mortgage loan. By giving us the Clear to Close they are saying we can move forward with the closing and that they will fund the purchase of your new home. It's almost time to celebrate your new home!

Once the Clear to Close is received, the lender will send you the Closing Disclosure, which is required by law to be sent to you three days prior to closing, and they will prepare your loan package to be sent to the closing attorney to prepare the paperwork for the closing. In addition, we’ll schedule the final walk through of your new home, which is usually conducted the day before or the day of closing.