Mortgage Approval & Clear-to-Close
While you’ve been preparing to move, the buyer’s lender has been diligently working on their loan.
Once the lender has approved the buyer’s financing, they give what is called a “Clear-to-Close.” This means the buyer’s mortgage is approved and the bank will provide the funds needed for the buyers to purchase your home.
Normally, the final mortgage approval is received and loan documents are ready a few days before the scheduled close of escrow. This is the last major milestone, and once this occurs, the buyers will go to the title office to sign all the necessary documentation. The “Clear-to-Close” enables the financing contingency to be removed.
The buyers will also provide the balance of their down payment to the title office and their loan will fund on or around the same time. With this, all of the key pieces are in place and closing is imminent.
The next step is the buyer’s final walk through, the official recording of the new title, and the key exchange.