I just received the clear to close on my home loan. What the heck does that even mean?

My name is Evan Kaufman, your VA loan originator, here to help explain.

Clear to close means exactly what it says—you are now clear to go close on the home. However, there are still some steps that need to be taken before you get the keys to your home, or the ability to move in and officially own it.

For us—and for most lenders that I know—clear to close means we have now passed all the conditions needed from the financing perspective to proceed with closing on the home. That means all those requests for new pay stubs, tax information, and similar documents are resolved. The title has been reviewed, things are looking good, and we’re ready to move forward.

However, there are still typically a few small steps between getting the clear to close and actually funding your home loan.

The biggest step in this process is usually balancing with title.

What does that mean?

Balancing with title—or the attorney’s office, depending on the state you’re in—means ensuring that we, as the lender, finalize the numbers on our end. At the same time, the title office or attorneys might have their own numbers, and we need to ensure they match up.

You can prepare for this in advance by reviewing some preliminary numbers leading up to closing. But once we have the clear to close and your closing date is set, we must finalize everything. This involves balancing the final figures so that you, as the borrower, can receive an exact final number.

For example, we, as the lender, will say, “Here are our final numbers,” and the title office will confirm their numbers. Both sides will reconcile, ensuring they match up. Once they do, you’re good to close.

From the lender’s perspective, getting the clear to close means we’re ready to rock and roll! But we still need to finalize everything with the title office. They may need to work out some additional details with us, but that’s typically the final step.

Sometimes, if you get the clear to close late in the process—like on the day of closing—there might be a fast turnaround to balance everything. However, in most cases, you should receive the clear to close a few days, or even a week or more, before your actual closing date.

The timeline depends on several factors, such as how quickly the process is moving or any delays with inspections or appraisals. If inspections or appraisals take a long time, that can push back your clear to close.

Here’s the good news: When you hear “clear to close,” you can usually breathe a sigh of relief. It means that pretty much all the mortgage-related stuff is done. The final step is balancing the numbers, receiving your final figures, and preparing to officially own your home.

That is what clear to close means and how it can impact you when you’re buying your next home.

Take care!