• Home / 
  • Learn / 
  • What Is Clear-to-Close?
Dan Green

Dan Green

Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. .

California-Style Home - Clear-To-Close

How We Make Money

Homebuyer.com is your trusted guide to homeownership. Since 2003, our team has offered real-world expertise and advice to tens of millions of U.S. home buyers. Our content stands on its integrity: it's factual, unbiased, and free from outside influences. Read our editorial guidelines.

Homebuyer.com is a mortgage-company-affiliated publisher. We earn compensation when you click specific links on the website, or apply for a mortgage with Homebuyer.com or a partner listed in our comparison tables. Our partners compensate us differently, so we randomize our tables to protect our readers from steering. We may also earn compensation for advertisements on the site, which are indicated clearly. Note that limitations in our software, whether we originate mortgages in your area, and credit factors may affect the offers and comparison tables you see on various parts of this site. We do not include offers for every mortgage product available. Someday, we hope we will.

Trusted Content

Trusted Content

This article was checked for accuracy as of January 21, 2024. Homebuyer.com ensures every piece of information we share reflects the latest in mortgage standards. Learn more about our commitments in our editorial guidelines.

What Is Clear-to-Close?

“Clear-to-close” or “cleared-to-close” is the final stage of mortgage underwriting, signifying that all prerequisites have been met and your mortgage lender has given the final nod of approval for your loan.

A Longer Definition: Clear-to-Close

Clear-to-Close, or CTC, is one of the final stages in a first-time home buyer’s mortgage approval. When a buyer receives their clear-to-close, it means their mortgage application’s conditions for approval have been met completely: income and asset information are reviewed and approved; home appraisal and title reports are confirmed and valid; and purchase contracts are legitimate and signed.

A mortgage that is clear-to-close is ready to go to signatures.

Generally, a few days pass between receiving a clear-to-close on a mortgage and getting to sign for your new house and keys. During this window, buyers can expect to schedule their closing date and time, review their final mortgage documents, and wire their funds for purchase.

Buyers should not make life or credit changes after their loan is CTC, because changes nullify mortgage approvals and the clear-to-close status can be revoked.

Clear-to-Close: A Real-World Example

Imagine a first-time home buyer notified that their mortgage application for an FHA mortgage is clear-to-close. This milestone indicates that the lender completed all necessary reviews and approvals, setting the stage for the final steps in acquiring a home.

The buyer enters a critical phase. Between today and their closing, they must maintain their financial stability and avoid any actions that could change their creditworthiness, such as making large purchases on credit or changing jobs or marital status.

Getting a clear-to-close means the buyer can schedule their final walk-through of the property, review their documents for closing, and wire their money safely to the settlement.

First-Time Home Buyer Stories: Clear-to-Close

Common Questions About Clear-to-Close

What should I do after getting my clear-to-close?

After receiving clear-to-close status, prepare for your closing by reviewing your closing documents, arranging the necessary funds, and confirming the details of your purchase with your real estate agent and mortgage lender.

How soon after clear-to-close can I expect to close on my home?

Typically, closings happen a few days after getting a clear-to-close status. This period allows for final preparations and scheduling of the closing meeting.

Is clear-to-close a guarantee that the home purchase will go through?

Getting a clear-to-close does not guarantee that your purchase will close successfully, but it’s an important milestone. Significant financial changes or unusual activities could require your mortgage to re-enter underwriting and affect your purchase transaction.

What should I avoid doing between clear-to-close and closing day?

After getting a clear-to-close, avoid actions that would change your financial profile or creditworthiness, including taking on new debts, making big purchases like a car or expensive appliances, or applying for new credit cards. Also, avoid changing your employment status or job title. Any change in your profile can lead to a re-evaluation of your financial situation and jeopardize your closing.


Changelog

  • November 20, 2023: Added video
  • November 19, 2023: Original publish date

Approve Your Mortgage - Instantly!

Wave goodbye to waiting times and say hello to our Immediate Mortgage Approval. It's more than just a mortgage - it's your ticket to home-buying freedom, available anytime you are. With ultra-low rates at your fingertips, the power to secure your future is just a click away. Why wait for office hours? Your home doesn't.

       "Clear-to-close" is the final stage of mortgage underwriting, signifying that all prerequisites have been met and your mortgage lender has given the final approval for your loan.

Subscribe to our Newsletter

Be a better buyer. Subscribe now and never miss out on exclusive insights, new market trends, and first-time buyer programs.

Ready to get started?

Finding your dream starts here. Apply in minutes.

Get Pre-approved
© 2021-2024 All rights reserved. Growella Inc d/b/a Homebuyer. Homebuyer.com is powered by Novus Home Mortgage, a division of Ixonia Bank, NMLS 423065. www.nmlsconsumeraccess.org Homebuyer is located at 230 Findlay Street, Cincinnati, Ohio 45214. Novus Home Mortgage, a division of Ixonia Bank, is located at 20225 Water Tower Blvd. Suite 400, Brookfield, WI 53045. We have no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture, or any other government agency. US Government agencies have not reviewed this information and this site is not connected with any government agency. Equal Housing Lender. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. The receipt of the application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.