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Getting the “Clear to Close” and What Comes Next
Going through the home buying process? It can feel like a never-ending journey of paperwork and verification to become a homeowner. Whether it is your first time purchasing a home or you are getting ready to buy your dream home, the final few steps of the process can be both exciting and nail biting.
The Words You Want to Hear
How do you know you are at the end of the home buying journey? Your loan officer or processer will let you know that you have the “clear to close.” This phrase is very important and means that you have met all of the requirements to purchase the home.
Up to this point, the loan company has a team of underwriters combing through the financial documents that you submitted to make sure that you are approved for the loan. The home is likely going through its own inspection as well, with a home inspector and/or appraiser giving it a once over. The loan company can ask for additional documentation all the way up until they give the clear to close, the final thumbs up on your loan application.
What Happens Next?
After you have the clear to close, the next step is to schedule your actual closing. This often happens through your attorney or title office. Your real estate agent may also help facilitate this step by putting the attorney in touch with you directly.
This can be done a few days after getting the clear to close. Depending on your state, there may be a required period between getting the clear to close and actually closing. This allows you, the borrower, to go through any disclosures and get advice on legal aspects that you may want or need. Unless your situation changes dramatically during that time, there isn’t anything that will prevent you from closing and purchasing the home. This period is just a legal protection required in some states.