Yes, clear to close means that your loan is approved. Unlike a mortgage pre-approval, the underwriter would have assessed the property you plan on buying. The lender likely ordered an appraisal to determine its value. If the value comes in too low, the deal could fall through, which is why even pre-approved borrowers might lose out on a home they want. Does
Your loan officer or processer will let you know that you have the “clear to close.” This phrase is very important and means that you have met all of the requirements to purchase the home. Up to this point, the loan company has a team of underwriters combing through the financial documents that you submitted to make sure that you are approved for the loan.
This type of loan is therefore unavailable to co-op buyers. In NYC, the mortgage recording tax rate is 1.8 percent for mortgages under $500,000 (and 2.915 percent for those over $500,000), so with a CEMA, in the example above, you would pay a tax of $1,800 instead of $3,600. "We do it every time we can," says Melissa Cohn, executive mortgage ...
The "closing,” also called “settlement,” is when you and all the other parties in a mortgage loan transaction sign the necessary documents. After signing these documents, you become responsible for the mortgage loan. Familiarize yourself with some of the key documents you will be signing so that you know what to look for when you get them.
Editor's Note: The following is an excerpt from a recent AZ New Homes article by David M Brown. After your loan is approved, keep a lid on spending until you close. The "mortgage quiet period" means just that: After your loan approval and before close of escrow, keep as financially silent as you can until you're comfortably moved into your new home.
