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Clear To Close – What to Expect and What Happens Next

Clear To Close – What to Expect and What Happens Next

Are you in the home-buying process and have just been informed that your loan has been approved for closing? Congratulations! You’re almost there and about to become a homeowner. Being informed that your loan has been approved for closing means you’re clear to close and it’s now time to get ready for the final step. In this blog post, we’ll discuss what to expect and what happens next when you’re clear to close.

Clear To Close – What to Expect and What Happens Next

The underwriter will order a title search and appraisals

Once the underwriter has reviewed your documents and made a decision, they will order a title search and appraisals to ensure that the property you are buying is free of any liens or issues. A title search helps to confirm that the seller has legal ownership of the property and that there are no other claims on it. 

The appraiser will assess the market value of the property. This appraisal will provide an estimate of what the property is worth and can be used to help secure a loan. Once all of the documents have been reviewed and the appraisals have been completed, the underwriter will issue a clear to close.

The loan officer will review your documentation

Once you’ve been issued a Clear To Close (CTC) from your loan officer, you’re ready for the home-buying process to move forward. Your loan officer will review all of your documentation one last time to ensure everything is in order and make sure all conditions have been met before closing. 

They will also provide you with an estimated closing statement and loan documents that need to be signed. Once you’ve received the CTC, you’ll be one step closer to owning your new home!

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The loan processor will verify your employment and income

Once you’ve been given the clear to close on your loan, your loan processor will take a few more steps to ensure that everything is in order. This includes verifying your employment and income to make sure that you have enough money coming in to pay your mortgage payments. Check out tools like fire calculator and Prorated rent calculator to calculate your ROI. 

The loan processor may contact your employer to check your wages, salary, or other forms of income such as bonuses or commissions. Your bank statements and tax returns may also be reviewed. After this process is complete, you can move forward to closing day.

The loan processor will verify your assets

Once your loan is approved, the loan processor will begin verifying your assets and income. This step is called the verification of deposit process and involves the lender making sure the accounts you stated on your application are accurate. 

They’ll usually contact your bank or other financial institutions to get documentation confirming the balances in your accounts. This can be done by obtaining copies of recent bank statements or other proof of liquid assets. Once verified, your loan will be officially cleared to close and you can move on to the next step!

The loan processor will order a credit report

After you have been told that you are clear to close, your loan processor will order a credit report to confirm the accuracy of the information you provided on your loan application. This final review will ensure that all details are in order before closing. 

After this is complete, the lender will issue a Clear to Close letter which authorizes the settlement process to begin. The settlement process includes signing documents, payment of closing costs, and more. At this point, you can plan for a move-in date as you know your closing date is set.

The loan processor will prepare the loan package for underwriting

Once your loan application has been approved and you’ve received the clear-to-close decision, the loan processor will prepare the loan package for underwriting. This package includes all of the paperwork needed to verify your financial information, such as bank statements, pay stubs, and tax returns. 

The loan processor will also ensure that any necessary documents are signed by both the borrower and the lender before submitting them to the underwriter. Once the underwriter has reviewed the package and approved the loan, it’s time to sign the closing documents and move forward with your home purchase!

The loan underwriter will make the final decision on loan approval

Once you have provided all the necessary documentation and the underwriter has reviewed your application, the final decision on loan approval will be made by the loan underwriter. 

Depending on the type of loan and other factors, they may need to conduct further review and analysis of your application before making a final decision. If approved, you will receive a clear-to-close notification, which means that you are ready to move forward with closing.


If you’ve been through the process of buying a home, you know that there’s a lot of paperwork, delays, and hoops to jump through. One of the final steps in the process is receiving your clear to close (CTC) from your lender. This is an exciting moment that means you’re one step closer to finally getting the keys to your new home. But what exactly does clear to close mean, and what should you expect next? You have surely received the answers here in this write-up.