topic Re: Clearing Up The "Clear To Close" Confusion in Mortgage Loans

Clearing Up The "Clear To Close" Confusion

Anonymous — Tue, 26 Apr 2016 17:14:58 GMT

It seems as if there has been a lot of confusion around Clear To Close (CTC). Just to be clear, there is no official CTC timing within the loan process. A typical files goes like this (at least in California):

Pre-approval (preferrably w/ AUS approval) >> offer accepted >> official loan application submitted >> initial disclosures (w/ LE) sent to buyer >> file to processing >> file to underwriting >> underwriting approval (w/ or w/o conditions) >> Closing Dosclosure (CD) sent to buyer >> closing docs sent to title company >> 3 day waiting period before buyer can sign closing docs >> buyers sign closing docs >> loan funds >> loan records >> buyer gets keys >> everyone can stop pulling their hair out (and yes, this is when you can go finance your new Ferrari)

The CTC is simply information that the LO is passing on to the buyer letting them know, "Hey, your loan is actually going to close... for real." I typically tell my clients they are CTC once we have met every condition from UW and we have full loan approval. The reason a CTC may be issued at different points along the process is because UW conditions are sometimes moved "prior to funding" if they are not of critical importance. This means that UW is okay with a CD being issued and closing docs going to title, as long as the prior to funding condition(s) are taken care of before the loan funds. With this being said, you technically are not CTC since you do not have full loan approval... even though you have a CD and your closing docs are at the title company.

To sum up this mumbo jumbo, a CTC is an LO letting the buyer know, "We got this," but this point in time can be different from loan to loan.

Re: Clearing Up The "Clear To Close" Confusion

DallasLoanGuy — Tue, 26 Apr 2016 16:34:18 GMT

ctc = we are going to spend our money on an attorney to draw up the documents.

there can always be a funding condition.... like closing statement on current residence when closing back to back

great job dp

Re: Clearing Up The "Clear To Close" Confusion

Sassy_Taurus — Tue, 26 Apr 2016 17:43:40 GMT

Thanks dpeezy

Re: Clearing Up The "Clear To Close" Confusion

Anonymous — Tue, 26 Apr 2016 17:55:21 GMT

I'm hoping to get to the CTC point sometime in the future.....where I will promptly ask dpeezy again to explain what it means

Re: Clearing Up The "Clear To Close" Confusion

Anonymous — Tue, 26 Apr 2016 19:02:37 GMT

They sent my closing disclosures when we were still waiting on termite stuff so that my 3 day clock could tick. I wasn't officially, completely clear until termite stuff was all in.

Re: Clearing Up The "Clear To Close" Confusion

Anonymous — Tue, 26 Apr 2016 19:37:20 GMT

Deezy--- thanks for clearing it up for us!

I was just darned happy to get the "CTC" message from my broker. Now its a matter of days before I can finance that Ferrari. =0)

Re: Clearing Up The "Clear To Close" Confusion

Anonymous — Wed, 27 Apr 2016 00:01:47 GMT

I would love to rest easy knowing my lender has stated I am clear to close but I am stressed (too much time between CTC and actual closing date) and I, like many others, have googled items like, "denied after clear to close" and other things which freak us out. Home buying (especially after a rebuilding period) is very stressful and many of us feel sick in those final moments as we anticipate the dream coming crashing down.

I appreciate you providing your insight to all of us who are in the clear to close stage of this process

Enjoy your evening DPeezy

Re: Clearing Up The "Clear To Close" Confusion

Anonymous — Wed, 27 Apr 2016 03:54:49 GMT

My loan officer & realtor both got a kick out of me being so stressed. They both said I was easily the best & least worrisome buyer this year. (Best as in I didn't drive them crazy even though I felt like I did.)

Re: Clearing Up The "Clear To Close" Confusion

Anonymous — Wed, 27 Apr 2016 17:48:31 GMT

Good luck to everyone close to the finish line!