You’re doing great. You have supplied all of the documentation and earnest money. We worked with the seller to complete repairs related to the inspection report. And now another major hurdle is here.
You are clear to close.
That means your lender has signed off on your loan and shipped documentation – known as the closing disclosure – to escrow to complete the sale. Outstanding news!
Typically, your lender will call to inform you of the loan status and will follow up with a formal letter in the mail. This letter clears the way for the closing process to begin.
Your escrow representative will be in touch soon to schedule the date, time and location to meet and complete the signing of papers to close the deal. You’ll want to schedule the meeting when it works for you, escrow and your attorney if you wish to have him/her present (but that’s not usually necessary).
“Clear to close” is the step that starts the final phase of the home-buying process. Well done, this hurdle is cleared!
That doesn’t mean you can go out and buy that living room furniture we talked about. Nope. You still need to wait until you have the keys to your new home to get that recliner chair.
The mortgage company has three business days to share with escrow full details on the loan, including terms, expected monthly mortgage payments, funds required by buyer to complete the sale and the lender’s list of its fees. Escrow then provides all parties with actual closing costs as part of a settlement statement, or closing disclosure.