UNDERWRITING CONDITIONS
Addressing all underwriting conditions is a crucial part of getting a loan to the closing phase. The borrower must provide everything to the lender that the underwriting department requires. It is not uncommon at this stage to have the underwriter come back with requests for information that up until that point the borrower never knew they had to hand over. This is what happened to the real estate agent in Florida whose deal took 10 extra days when it was discovered crucial information was missing from the loan application. This is yet another reason why a terrific loan officer is necessary for a successful mortgage. You want someone who will shepherd your buyer to answer all necessary questions as quickly as possible, so you can keep the loan moving forward. Everyone wants to stay on track for the closing date that everybody is aiming for.
CLOSING: CLEAR TO CLOSE
Once you’ve addressed and resolved all the underwriting conditions, the underwriter will issue a “clear to close.” As one would expect, that means you are ready to finalize the deal. At this point, the lender will put together the closing disclosure and provide that to the buyer. The buyer must sign it, and then, according to federal law, there is a three-day wait after the paperwork is signed. If your goal is to close by a certain date, make sure you get the closing disclosure signed at least three days before closing, so you can close on time. Then comes the closing, the moment everyone has been waiting for. The buyer, seller, Realtors®, and maybe an attorney, all sign
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