What Is Clear to Close When Buying a Home in Las Vegas?
As you get closer to closing on a Las Vegas home, you may hear your lender or real estate agent say that your loan is “clear to close.”
Those can be welcome words after weeks of paperwork, underwriting, and lender requests.
Clear to close generally means the lender has completed the major requirements for final loan approval and the transaction can move toward closing.
Does Clear to Close Mean My Mortgage Is Approved?
Generally, clear to close means the loan has passed through underwriting and the lender is prepared to proceed toward closing, subject to any remaining lender and closing requirements.
It’s an important milestone, but it doesn’t mean you should make significant financial changes before the transaction is complete.
Continue following your lender’s instructions until the loan has funded and the purchase has closed.
What Happens Before a Loan Is Clear to Close?
Before reaching this point, a financed purchase commonly goes through several steps.
These may include:
- Mortgage application
- Verification of income, assets and employment
- Credit review
- Home appraisal
- Mortgage underwriting
- Satisfaction of underwriting conditions
- Preparation of final loan and closing documents
The exact process varies depending on the lender, loan program and transaction.
What Happens After Clear to Close?
Once the loan is clear to close, attention turns to completing the final steps of the purchase.
Depending on the transaction, those steps may include:
- Receiving and reviewing required closing documents
- Completing the final walkthrough
- Arranging funds needed for closing
- Signing loan and purchase documents
- Completing any remaining lender or escrow requirements
- Loan funding and transfer of ownership
Your lender, escrow company and real estate agent will let you know what is required and when.
Is Clear to Close the Same as Closing?
No.
Being clear to close means you’re approaching the finish line. It isn’t the same as having completed the purchase.
Documents still need to be signed, required funds must be provided, and the transaction must complete the applicable closing and recording process.
Until that happens, you don’t yet own the home.
Can Something Go Wrong After Clear to Close?
It’s possible.
Lenders may perform additional verifications before funding. Changes to your finances, employment, credit or other information used to approve the loan could create problems even late in the transaction.
That’s why buyers should generally avoid making significant financial changes before closing without first discussing them with their lender.
Should I Make a Large Purchase After I’m Clear to Close?
This is usually not the time to finance the new furniture, appliances or vehicle you’ve been thinking about.
New debt or changes to your available funds can potentially affect your loan qualification.
Before opening a new credit account, making a large purchase, moving substantial amounts of money or making another significant financial change, check with your lender.
Waiting until after the home purchase has closed can prevent an unnecessary last-minute complication.
What Should I Do While Waiting to Close?
Stay available and watch for requests from your lender, escrow company and real estate agent.
You should also prepare for your final walkthrough, which gives you an opportunity shortly before closing to confirm the property’s condition and address certain issues that may have arisen since you agreed to purchase it.
Keep your identification, closing funds and other requested items ready so you aren’t scrambling at the last minute.
Reaching the Finish Line on Your Las Vegas Home Purchase
Clear to close is one of the final major milestones in a financed home purchase.
By this stage, you’ve likely made it through the offer, inspections, appraisal, underwriting and numerous other details involved in buying the property.
There are still a few steps left, but closing day is getting close.
If you’re buying a home in Las Vegas or Henderson, The Le Van Team can help you navigate the transaction from your initial home search through the final walkthrough and closing.
