CTC: Clear to Close

If it’s been a while since you purchased a home, or have had a mortgage, or you never have before, then you need to know the acronym CTC. What that means is clear to close.

Now, those are the magic words that every buyer and seller want to hear.  

So, if it’s been a while, and you think that you’re about to close next week…not so fast! Until the buyers lender or your lender gives you the clear to close — those are the terms — you’re not closing! Or, your closing date and time is kind of up in the air!  

Clear to close means that the lone underwriter has reviewed the entire loan package and has given it its stamp of approval – everything looks good – and then they give you the clear to close.  

So what happens is the loan officer gets the loan and they hand it over to the loan processor, who gets all your information, and once they package it all up, they send it to the underwriter and the underwriter reviews everything, and if the underwriter kicks it back for some other [missing] things, then you don’t have to clear to close.  

Do not get excited about closing sellers (closing on your house) or buyers (closing on the house) until the buyer’s lender says your CTC.