Clear to close.
Such a beautiful phrase in real estate…
A “clear to close” buyer is in a good position. That’s because the mortgage underwriter has reviewed and approved all documentation required to fund the loan. The lender can then send a clear to close letter to the attorney. Also, it means you can set the closing date. All that remains is the actual closing process.
Once you are clear to close, your attorney should send out the closing disclosure.
This document must be delivered 3 business days before closing so that you know exactly how much money you need to bring to the table. You will need to go to your bank and get a certified check or have the money wired to your attorney. If you are wiring funds, do so in advance to avoid any glitches that might delay the closing.
Be warned: Wire Fraud is a real threat in today’s world.
Do NOT accept wiring instructions via email. Physically call the attorney’s office to verify and double check that you have the correct wiring instructions. It’s worth it to be overly cautious about this step in the home buying process.
Your attorney’s office will arrange the time and location of your actual closing. In some areas of the country, sellers and buyers sit down at the same table for closing. In others, the seller and the buyer never end up face to face.
If you prefer, you can have your attorney FedEx the documents to you for signatures. Electronic signatures are not valid on legal closing documents. You must physically sign. This may change in the future since nearly everything is done online these days. For now, you have to use a pen.
Next step…the actual closing…
Have more questions about buying or selling your home?
Contact us HERE. We are happy to help!