When a loan is clear to close (CTC), it means the underwriter has given final approval on the file and the lender is ready to move forward to closing — subject to a few final pre-funding checks, of course. This is a major milestone for borrowers, but there’s one last phase of the loan lifecycle left.

Let’s break down the clear-to-close process, focusing specifically on what happens between clear to close and closing day, plus how mortgage professionals can make this stage faster, smoother, and more predictable.

Why Does the Period Between Clear to Close and Closing Matter?

Whether you’re a seasoned mortgage professional or brand new to the industry, this phase is one of the most important for you and your borrowers.

That’s because:

• Last-minute financial changes can still derail eligibility
• Title, funding, and scheduling all collide at once
• Borrowers may be feeling anxious or confused, so clear guidance matters even more
• Closing delays are always a possibility

Essentially, the clear-to-close process is the final step in determining whether the loan sees a smooth closing or hits any number of stumbling blocks.

What Happens Immediately After Clear to Close?

Though CTC is a major milestone for borrowers, it’s also the point where expectations have the potential to get fuzzy. Communication that is proactive, focused, and clear can make all the difference. Here are some of the key touchpoints where issues may arise and our favorite tips for avoiding delays.

1. Closing Disclosure (CD) Finalized and Delivered

Some borrowers don’t realize that they must receive the CD at least three business days before closing. When this three-business-day waiting period comes as a surprise, it can create challenges at close and potentially undermine all that relationship building you’ve done with your clients.

Smooth process tip:

• Confirm borrowers know the CD must be acknowledged promptly
• Explain why major changes (like APR or loan type) can reset that three-day clock
• Frame this phase as a compliance safeguard, not a delay.

2. Closing Appointment Scheduling

Once a loan is CTC, borrowers may assume that closing is immediate. It can be helpful to explain that scheduling closing involves multiple parties and logistics.

Smooth process tip:

• Explain who will be involved – the borrower, the seller, the closing attorney/settlement agent, and the mortgage professional
• Give a realistic window for when closing will likely occur
• Encourage flexibility and the importance of being available to schedule closing
• Share what to expect at closing so they feel prepared

3. Prior-to-Funding (PTF) Conditions Cleared

Borrowers may thing that CTC means the process is “done.” It can be helpful to explain that some final quick checks – like updated verbal verification of employment (VVOE), final credit refresh, re-inspection of repairs (if require by appraisal), or lender-specific compliance terms – are pretty standard and can help to protect the integrity of the loan.

Smooth process tip:

• Ask your borrowers to try to stay responsive to calls or emails – they’re almost through the hard part
• Remind clients to avoid major financial changes until after closing
• Position these steps as routine – and necessary – not a sign of trouble

4. Title and Settlement Finalize Documents

Title and settlement tasks can feel invisible to borrowers, yet they’re critical. Communicate what’s happening so clients don’t worry about delays.

Smooth process tip:

• Let them know wire instruction and payoff details are being finalized
• Stress the importance of verifying wire instructions to prevent fraud

5. Borrower Prepares Funds for Closing

Funding issues are one of the most common closing delays, so making sure that borrowers know exactly how (and when!) to send their funds is critical.

Smooth process tip:

• Confirm the final “cash to close” amount as early as possible
• Remind borrowers not to rely on mobile transfers or automated clearing house (ACH)
• Warn them about wire fraud

How Else Can I Speed Up the Clear-to-Close Process?

To further improve the client experience, mortgage professionals might work to:

Set Borrower Expectations Upfront

Borrowers may think that “clear to close” means closing that same day. A simple, one-page “What Happens Next” guide can help address common questions and reduce confusion.

You may want to include:

• What the borrower must do
• What the lender will complete
• Funding instructions
• Timeline overview

You might also consider sending borrowers a “What Not to Do Before Closing” reminder immediately after clear to close has been issued.

Then, be available to answer any questions that might crop up.

Over-Communicate with Title and Settlement

Ensuring all stakeholders are on the same page will smooth the process out for everyone.

Best practices include:

• Confirming receipt of any updates, information, or documents
• Verifying wire instructions
• Double-checking payoff statements
• Getting key dates and deadlines in writing
• Scheduling regular check-ins to ensure the process is moving along as anticipated

Pre-Queue Prior-to-Funding (PTF) Items

Preparing PTF items ahead of time can shave hours or even days off the timeline.

Consider gathering:

• Updated VVOE
• Insurance validation
• Final fee sheet
• Property tax verification
• Any other items the lender in question may request

Use Automated Tools Thoughtfully

Manual processes can significantly slow these flows down. Forward-looking mortgage professionals might look into:

• Automated status updates in your loan operating system (LOS)
• Automated borrower alerts
• Closing appointment reminders
• Task management triggers for key items

While automation can’t replace human communication, it can certainly help prevent things from falling through the cracks.

Key Takeaways: Optimizing the Clear-to-Close Process

• The period between clear to close and closing is critical—small missteps can cause big delays.
• Proactive communication helps borrowers understand timelines, compliance rules, and their responsibilities.
• Last-minute checks (employment, credit, title) are routine but require borrower responsiveness to avoid hiccups.
• Funding readiness—accurate wire instructions, fraud prevention, and timely transfers—can make or break closing day.