This BLOG On Clearing Conditions For Clear To Close On Home Purchase Was UPDATED And PUBLISHED On October 24th, 2019
Once mortgage borrowers have signed mortgage application and the mortgage processor has processed application, it then gets submitted to underwriting. A mortgage underwriter gets assigned to the file. In most cases. After the underwriter has thoroughly reviewed the borrowers applications and documents, borrower will get a conditional mortgage approval
- A conditional mortgage approval is by no way a guaranteed that mortgage loan will get a clear to close
- Once all the conditions have been met, borrowers will get a clear to close
- A conditional mortgage approval is a great sign that mortgage will soon close
- Its the road to a clear to close
- Once borrowers get a conditional loan approval, they should work on clearing conditions as soon as possible
- Not Clearing Conditions For Clear To Close in a timely manner is what delays a clear to close
In this article, we will cover and discuss clearing conditons for clear to close on home purchase and refinances.
Examples Of Clearing Conditions For Clear To Close On Home Purchase
The mortgage underwriter will give borrowers time to submit the conditions on the conditional loan approval.
- It is best to get started as soon as possible in getting all the conditions to the processor so they can submit it to underwriting
- Processors normally make sure all of the conditions are complete prior to submitting the conditions to underwriters
- If processor submits partial conditions, the whole mortgage loan package will get kicked back
- The whole process will need to get restarted and will cause delays
- For example, if all conditions have been collected and submitted to the underwriter, the underwriter will not drop whatever he or she is doing and sign off on a clear to close
- Once all conditions have been submitted for a clear to close, it normally takes 24 to 48 hours or more for the underwriter to review the conditions and sign off on the clear to close
- If any of the conditions is missing or the file is incomplete, it gets sent back to the processor and this will cause delays in getting a clear to close
This is why delays in clear to close happens and the real estate closing gets delays.
Delays With Clearing Conditions For Clear To Close
There are times that delays happen in getting conditions, not from borrowers, but from the source itself.
- For example, if borrowers had multiple jobs in the past two years, we need to get verification of employment from all previous employers
- Many previous employers are in no hurry in helping ex employees
- Many take their time in getting the proper verification of employment form signed and back to the processor
- Other common delays are when their are errors on borrower’s credit report
- A credit supplement needs to get done, which can take up to a week and be a cause of a delay in a clear to close
Rapid Rescores take anywhere between 3 to 5 business days.
Delays In Clear To Close
There are cases where the mortgage processors submits all of the conditions to the underwriter and the underwriter checks off the conditions submitted but requests additional conditions on the mortgage file.
- This will definitely cause more delays in getting a clear to close and most likely delay the mortgage loan closing
Home Buyers who need to qualify for mortgage with direct lender with no mortgage overlays on government and conventional loans, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at firstname.lastname@example.org. All of our pre-approvals at Gustan Cho Associates Mortgage Group are full credit approvals that is underwritten and signed off by our mortgage underwriters.