You received your clear to close. Congratulations! But what exactly does that mean?
It means the underwriter has reviewed all documents and determined that all requirements (documents, appraisal, proof of funds, etc.) have been fulfilled. The underwriter gives the stamp of lending approval and the “clear to close”. Related Reading: Steps to Buy a Home.
When should I receive clear to close?
You could receive your clear to close up to 2 weeks before the actual closing day. There is a problem if you do not receive the Closing Disclosure within 3 days before closing.
What should I do before closing?
It’s time to review a few items to ensure everything is set up for the big day:
Before closing checklist:
- Your lender will pull your credit one more time just before closing to look for changes and they will confirm that you are still employed. No changes please!!!! Avoid the temptation to purchase any furniture for your new home. You’ll need to hold your financial breath until the ink is dry on the deed.
- Is your new homeowners insurance set up?
- Is your down payment ready and available?
- Is your home warranty in place if you choose to have one?
- Have you received all receipts of repairs agreed to in the inspection resolution?
- Now is the time to schedule the closing appointment if we haven’t already done so. My transaction coordinator will reach out to you to discuss a time that works for you.
- I prefer to do the final walk through right before closing or late in the day before closing. What works for you?
- If you want your home inspector to review all repairs the seller completed, you should schedule this now. Buyers generally opt for this when repairs are extensive and/or expensive.
- Are all utilities set up/transferred for service (water, gas, electric, TV, Internet, phone, etc.) starting on closing date?
- Some buyers change locks after closing. Is this something you’d like to do?
- Are you considering any painting, carpet or house cleaning before you move in? It’s a good idea to schedule this now. Work is not permitted before closing (not even cleaning). There might be an exception, but it will be up to the seller.
- The transaction coordinator will review all transaction documents and will be in touch with you if any items are incomplete.
- The title company may send you tax or other closing documents ahead of time for you to review.
- Have you changed your address, forwarded your mail or put it on hold?
- You are not allowed to move any of your possessions into the garage or house until you are closed and funded.