“Clear-to-Close” (CTC) is the final mortgage milestone: your lender’s underwriter has verified income, assets, employment, appraisal, title and insurance, and signed off on every loan condition. At this point the lender is ready to fund your mortgage and you can move forward to closing.
CTC follows pre-approval and conditional approval. After submitting financial documents and completing underwriting reviews, CTC signals that all contingencies are satisfied and you can schedule your closing appointment.
Pre-approval is an initial assessment based on credit score, debt-to-income ratio and stated income/assets. It gives you a price range but isn’t a guarantee—you still need full underwriting.
Conditional approval means the underwriter has begun reviewing your loan file but flagged documentation or conditions to resolve, such as updated pay stubs or additional asset statements.
Once every condition is satisfied—appraisal review, title search, homeowners insurance confirmed—the underwriter issues CTC, your green light to close.
The underwriter reviews documents, approves or denies each item, and ultimately issues CTC. Your loan officer coordinates document submission, communicates status and notifies you when CTC arrives.
Submit any last bank statements, fund verification or additional signed disclosures your lender requests before closing.
Coordinate with your real estate agent, title company or attorney to pick a closing date and location, typically within 1–3 business days of CTC.
Review your Closing Disclosure, lock your interest rate if not already locked, and arrange wiring instructions so your cashier’s check or wire transfer is ready on closing day.
Most conventional loans close within 1–3 business days after CTC. FHA and VA loans can take 2–5 days due to additional agency reviews.
Delays often stem from missing docs, appraisal issues or last-minute credit inquiries. Prevent them by avoiding major financial changes, responding promptly to lender requests and ordering the appraisal early.
“Clear-to-Fund” is the final lender instruction to the escrow or title company to disburse loan proceeds on closing day, immediately before ownership transfers.
Rarely, but possible if there’s a material change in your credit or employment. Avoid new debt or inquiries until after closing.
Usually, yes—provided you submit funds and docs on time. Unexpected title issues or fund delays can push the date, so plan for a buffer.
Once you have CTC and a confirmed closing date, it’s safe to schedule movers, transfer utilities and lock in home services for move-in day.
Yes. Whether you choose a conventional, FHA, VA or USDA loan, CTC always means underwriting conditions are met and your file is ready to fund.
Closing costs include origination fees, title insurance, recording fees and prorated taxes and insurance prepaids.
Be prepared to show proof of your down payment and any reserve requirements before closing—lenders will verify funds up until CTC.
Obtain wiring instructions directly from your title company or escrow agent and wire funds at least one business day before closing to avoid delays.
Stay in regular contact with your loan officer and real estate agent to tackle any issues immediately.
Create a folder with pay stubs, bank statements, tax returns and insurance documents so you can upload or email them without delay.
Don’t open new credit lines, switch jobs or make large purchases until after closing—any change can trigger a re-underwrite.
Jane found her dream starter home and applied for an FHA loan through her local lender.
After submitting pay stubs, bank statements and insurance proof, Jane’s lender ordered an appraisal. The appraisal matched the purchase price and title came back clear. Two days later, Jane received CTC.
CTC is the final lender approval indicating all underwriting conditions are met and the loan is ready to fund.
Monitor email updates from your loan officer, confirm with the title company and verify your wire has been received.
For more terms, visit our Mortgage Glossary and FAQ pages.
