What Is Clear to Close?

Clear to close means the underwriter has reviewed and approved every condition on your mortgage file, and the loan is ready to proceed to closing. It is the final green light in the loan process, typically issued 1–3 business days before your scheduled closing date. Once you receive clear to close, no additional documents or verifications should be needed.

For example, after your appraisal comes in at $360,000 on a $350,000 purchase, your title search is clean, and you have provided all requested pay stubs and bank statements, the underwriter issues a clear to close. At this point, your closing agent prepares the final documents, your Closing Disclosure is finalized, and a closing appointment is confirmed. On average, the time from clear to close to actual closing is 1–3 business days.

Key Facts

• Issued by: The lender’s underwriting department after all conditions are met
• Timing: Typically 1–3 business days before your closing appointment
• Conditions cleared: Appraisal, title search, income verification, insurance, and all prior conditions
• Next step: Closing Disclosure finalized and closing appointment scheduled
• Still at risk: A significant credit or employment change before closing can revoke the approval

Frequently Asked Questions

Can anything go wrong after I receive clear to close?

Yes, though it is rare. If the lender runs a final credit check and discovers new debt, a job change, or a large unexplained deposit, your clear to close can be revoked. Avoid making any major financial changes between clear to close and your closing date.

How long after clear to close until I actually close?

Most borrowers close within 1–3 business days after receiving clear to close. The remaining time is used to prepare final documents, schedule the signing appointment, and ensure your Closing Disclosure 3-day review period has been met.

Is clear to close the same as final approval?

Effectively, yes. Clear to close is the underwriter’s final sign-off confirming your loan meets all program guidelines and every outstanding condition has been satisfied. It is the last approval milestone before you sign at the closing table.