If you are using a mortgage for a MA home purchase, obtaining a clear to close is very important. It means that your loan has met all of the mortgage underwriting conditions. Up until that point, things still remain uncertain to some extent. Here’s what you should know about getting a clear to close if you’re nervously waiting for your closing.
When is a clear to close issued?
Lenders do not issue a clear to close until all mortgage underwriting conditions have been met. Some of these conditions can not be completed until shortly before closing. For example, lenders often obtain a verbal verification of employment 7-10 days before closing. They may also re-check your credit to verify that nothing has changed. Because of these last minute items, a clear to close may not be issued until a week or even just a day before closing. Waiting for this news can be extremely stressful for everyone involved. It is important to understand why a clear to close happens so late in the process and that it is perfectly normal.
What happens after a clear to close?
After a clear to close has been issued, mortgage files are sent to the closing attorney. The attorney must prepare the documents to be signed, closing figures, and other documents for the lender to review. Corrections may need to be made before the closing documents are ready to be signed by the buyer and seller.
When can I schedule my closing?
Some closing attorneys prefer to wait for the clear to close before scheduling a definitive closing date and time for MA home purchases. Most attorneys will gladly select a tentative date, with the understanding that it may change depending on when the clear to close is issued and files are received from the lender.