What Does it Mean to be Cleared to Close?

Estimated reading time: 2 minutes

With so many moving parts of the mortgage process, milestones can help you track the things that matter most. One important milestone is reaching clear to close. Some first-time homebuyers assume this milestone means they’ll immediately receive their keys, but there are still important steps that remain.

What is Clear to Close?

Clear to close, or CTC, is an exciting milestone in the homebuying journey. It means you’ve met the requirements and conditions for your loan’s closing. Your underwriter has fully inspected your file and verified that you meet the necessary requirements for your loan program.

Your lender will schedule a date and time to meet for your closing and contact your title company, real estate agent, attorney, and any other parties that plan on attending. They will also compile any final documents you’ll need to sign during your closing appointment.

Will Your Loan Automatically Close After Reaching Cleared to Close?

After you’re cleared to close, your mortgage lender will check your credit and employment one more time for assurance that you haven’t taken out other loans or switched jobs. During this time, it’s best to keep common pitfalls in mind and wait for further communication from your Loan Originator.

So, What’s Next?

Before you move in, it’s time to put the finishing touches on your loan and be sure your new home is in the condition you expect it to be in.

Closing Disclosure

Your closing disclosure outlines the terms and conditions of your mortgage agreement while also providing a comprehensive overview of necessary costs. This document should include your mortgage rate and its term, your loan type, and your closing costs.

Your disclosure will be sent at least three days before your scheduled closing date. During this time, check your disclosure for any errors. If something doesn’t make sense, contact your Loan Originator right away for clarity.

Final Walkthrough

Your final walkthrough is the time to guarantee your new home is ready for you before your closing date. Bring your home inspection report and real estate agent to ensure the property is in the condition both you and the seller agreed upon for the sale.

Closing Day

You’ve made it to your closing day! During your scheduled closing appointment, you will sign all remaining documents and finalize the details of your home loan. Once closing wraps, you’ll most likely get the keys for your new home!

Here for You Every Step of the Way

No matter where you are in your homeownership journey, Homestead Funding can help you with your financing. Ready to get started? Contact us today!