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What exactly does clear to close mean?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Member

What exactly does clear to close mean?

Does that mean everything complete?  and I mean everything..last min credit checks etc. . My apologies, probably redundant.

Message 1 of 8
7 REPLIES 7
Frequent Contributor

Re: What exactly does clear to close mean?

Yes.. That's exactly what it means!' All conditions are clear & you will close on your home on the schedule day
Message 2 of 8
Established Contributor

Re: What exactly does clear to close mean?

No that is not true. In my case, it meant the underwriter was done with the file and approved it, but I still had to go through routine quality control and final credit SP.

There are no guarantees these days until your loan has been funded. In some rarer cases they will check your credit AFTER closing.
Message 3 of 8
Member

Re: What exactly does clear to close mean?

Thank you

Message 4 of 8
Established Contributor

Re: What exactly does clear to close mean?

Don't worry as long as there is nothing new you'll be fine!

Message 5 of 8
Senior Contributor

Re: What exactly does clear to close mean?

The lender's closing department issues the clear to close ... not the underwriter.

Message 6 of 8
Established Member

Re: What exactly does clear to close mean?

Clear to close means you are completely good to go and you will close .  The time when the underwriter has finished everything he needs to do is conditional or full approval

 

 


@Peter1142 wrote:
No that is not true. In my case, it meant the underwriter was done with the file and approved it, but I still had to go through routine quality control and final credit SP.

There are no guarantees these days until your loan has been funded. In some rarer cases they will check your credit AFTER closing.
Message 7 of 8
Senior Contributor

Re: What exactly does clear to close mean?


@OnOurWayHome wrote:

Clear to close means you are completely good to go and you will close .  The time when the underwriter has finished everything he needs to do is conditional or full approval

 

 


@Peter1142 wrote:
No that is not true. In my case, it meant the underwriter was done with the file and approved it, but I still had to go through routine quality control and final credit SP.

There are no guarantees these days until your loan has been funded. In some rarer cases they will check your credit AFTER closing.

I agree with Peter. A clear to close does not guarantee a close. The lenders closing department has to complete several checks, collect some docs, prepare the HUD-1 statement, review it with the borrower, etc ... before a closing can occur. I have seen deals die AFTER the clear to close.

Message 8 of 8