“Clear to Close” - three words that every homebuyer loves to hear, and a major milestone in the mortgage process. But what exactly does it mean, and what happens next? Here’s a quick refresher you can share with clients or keep handy for your own reference.

What Does “Clear to Close” Mean?

At this point, the finish line is in sight. All underwriting conditions have been satisfied, the appraisal and inspections are complete, and the loan file has received the green light to proceed to closing.

Next Stop: The Closing Table

Closing day is when final documents are signed, funds are exchanged, and ownership officially changes hands. A notary, attorney, or escrow officer will guide buyers through each document and ensure all the paperwork is completed properly.

Key Things to Know About Closing Day

1. Appointment Details
Closings typically take about an hour, but it’s wise for buyers to block out extra time so the process doesn’t feel rushed.

2. Funds to Close
If a down payment or closing costs are required, those funds must be provided via certified check or bank wire. Buyers should always verify wiring instructions directly with the title or escrow company to avoid fraud.

3. Documentation
Updated paystubs or banking information may still be needed. The lender will notify the buyer in advance if anything additional is required.

4. Photo ID
Buyers must bring a valid, government-issued photo ID to their closing appointment.

Bottom Line:

Hearing “Clear to Close” means the hard work is nearly done - but it’s important to know what to expect on closing day to ensure a smooth and stress-free finish to the homebuying journey.