In the world of real estate, there is no phrase more beautiful to a homebuyer’s ears than “Clear to Close.”
After weeks of inspections, appraisals, and mountains of paperwork, these three words signal that you have officially crossed the finish line. But what exactly does it mean, and what happens between that announcement and the moment you get your keys?
At Clear Title & Appraisal Co., we specialize in making this final stretch as smooth as possible. Here is your detailed, step-by-step guide to the final days of your home purchase.
What Does “Clear to Close” Actually Mean?
Being “Clear to Close” (CTC) means that your mortgage lender’s underwriter has reviewed every piece of financial documentation, the property appraisal is complete, and all “conditions” for the loan have been met.
The lender is officially committing to funding your loan. At this stage, the file moves from the loan officer to the Closing Department and the Title Company to coordinate the final legal transfer of the property.
Step 1: The Closing Disclosure (CD) and the 3-Day Rule
Once you are clear to close, your lender will send you a document called the Closing Disclosure (CD).
- What it is: A five-page document outlining your final loan terms, projected monthly payments, and exactly how much you will pay in fees and closing costs (your “cash to close”).
- The Waiting Period: Federal law requires a three-business-day waiting period from the time you receive the CD to the time you sign your closing documents. This is designed to give you time to compare the final numbers with the “Loan Estimate” you received at the start of the process.
Step 2: The Final Walkthrough
Usually, 24 to 48 hours before the closing appointment, you will visit the house one last time with your real estate agent.
What you are checking for:
- Condition: Ensure the home is in the same condition as when you made the offer.
- Repairs: Verify that any repairs agreed upon after the inspection have been completed.
- Included Items: Check that the seller hasn’t taken things they agreed to leave (like the refrigerator, light fixtures, or curtains).
- Empty & Clean: Ensure the seller has moved out and left the home “broom clean.”
Step 3: Confirming the Wire Transfer
On the day of or the day before closing, you will need to arrange for your “Cash to Close” to be sent to the title company.
- Security Warning: Always call your escrow officer at Clear Title & Appraisal Co. directly to verify wiring instructions before sending any money. Wire fraud is common in real estate, so never rely solely on an email.
- Alternative: Some title companies accept a cashier’s check, but wire transfers are the standard for a “same-day” closing and funding.
Step 4: The Signing Appointment
This is where the magic happens. You will meet at our office (or with a mobile notary) to sign the stack of legal documents.
- What to Bring: A valid government-issued photo ID (driver’s license or passport) and any outstanding documents requested by your lender.
- What You’ll Sign: You’ll sign the Promissory Note (your promise to pay back the loan), the Deed of Trust (putting the house up as collateral), and various state and federal disclosures.
- The Title Role: We ensure that the title is clear of any liens or disputes, providing you with title insurance that protects your ownership rights forever.
Step 5: Funding and Recording
Many buyers think that once they sign the papers, they own the house. Not quite! There is one final step: Funding.
After you sign, the title company sends the signed package back to the lender for a final review. Once the lender verifies everything is in order, they “release the funds.”
- Funding: The money is sent to the seller and the title company.
- Recording: The title company files the new deed with the county clerk.
- Keys: Once we have “Funding Authorization,” your Realtor can officially hand you the keys!
The “Clear to Close” Golden Rules (What NOT to do)
To ensure your “Clear to Close” status doesn’t get revoked at the last second, follow these rules until the keys are in your hand:
- Do NOT make large purchases: Avoid buying new furniture or a car on credit.
- Do NOT change jobs: Stability is key for the lender’s final credit refresh.
- Do NOT move large sums of money: Keep your bank statements consistent.
- Do NOT miss credit card payments: Even a small late fee can drop your credit score and disqualify your loan.
The Clear Advantage
At Clear Title & Appraisal Co., we know that the final days of a home purchase can be stressful. Because we house both Title and Appraisal services, we catch potential hurdles earlier than traditional firms, ensuring that when we say you are “Clear to Close,” you stay that way.