Question 1

Is clear to close the same as closing?

Accepted Answer

Clear to close means you’re ready for the closing process, while closing refers to the act of closing on your mortgage loan. After you’ve been cleared to close you’ll need to sign your closing disclosure, do a final walkthrough and attend your closing.

Question 2

Is it better to close at the end of the month?

Accepted Answer

If you schedule your closing at the end of the month, you’ll pay less in mortgage interest for the month in which you’re closing. This could translate into hundreds – or even thousands – of dollars in lower closing costs. Depending on your financial situation, however, it could make more sense for you to close at the beginning of the month. Read more about the best time to close to get help determining your ideal closing date.

Question 3

What’s the difference between a mortgage commitment letter vs. clear to close?

Accepted Answer

While a mortgage commitment letter is an assurance from a lender that they’ll loan money to you, receiving the letter only means you’ve completed the underwriting process for the loan you’ve requested. You – or the property – may still need to meet certain final conditions before your mortgage lender fully approves your loan and you become clear to close.

Question 4

What are the underwriting guidelines to becoming clear to close?

Accepted Answer

In your mortgage commitment letter, your lender will go over the underwriting conditions you’ll need to meet to become clear to close. To determine that you’ve met these conditions, your lender may typically request: Current bank statements, tax returns, paycheck stubs and other verifications of your income and assets. A copy of the signed purchase agreement. Proof that you haven’t taken on additional debt (for example, providing details or information about large deposits to your accounts). Documented explanation of any unusual financial circumstances. A gift letter documenting funds gifted from friends or family.

Jumbo Loan: Limits, Rates, Requirements And More

What Is A Jumbo Loan?

Jumbo L