Congratulations! You've submitted your loan application, been through conditional approval and now you've reached final approval! At this step of your loan, you've met the requirements and conditions to close on your mortgage. Underwriting has fully inspected your documents and verified that you meet the requirements of the loan type and mortgage amount you've requested.
Final Approval or Cleared to Close?
Both phrases are used interchangeably by most lending companies. With Guild Mortgage, we call this step of your loan "Final Approval" but you may also take that to mean that your mortgage has met the requirements to be "Cleared to Close."
Pat yourself on the back! Reaching this stage allows us, your mortgage lender, to order the documents package to be delivered to title. These documents are what will be signed by you and all additional borrowers on your Uniform Residential Loan Application (URLA).
What to Expect After Final Approval
If you haven't received your Closing Disclosure at the Conditional Approval stage, you will be receiving it no fewer than 3 business days before your scheduled closing date. This Closing Disclosure includes the loan type, term, estimated monthly payment, rendered service fees, prepaids, cash-to-close, various loan calculations and contact information.
Once acknowledged with your signature, the 3-day countdown begins.
Closing Documents: After Final Approval, we get to work on "Prior to Funding" conditions behind the scenes and also begin the request process to have your documents prepared and delivered to title.
In order to request the Closing Documents, either myself or a member of my team will reach out to you to set up a closing appointment. We will coordinate your signing window with title to figure out available closing appointments along with times convenient for you.
The Closing Documents are set to your closing date so be sure all borrowers are available to appear to sign the documents in person to avoid additional delays.
Can Your Loan Still Be Denied?
Final Approval does not guarantee you will close on your home. It's unusual to occur, but there are circumstances where this could occur. These reasons include but not limited to:
- Loss of qualified income such as employment termination or changing jobs.
- Newly discovered obligations such as a vehicle purchase or new line(s) of credit.
- Unexpected lawsuit.
- Filing for divorce or bankruptcy.
- Loss of life or ability to sign loan documentation.
- Loss or spending of funds needed as "Cash to Close" to complete the loan.
- Other dramatic changes to your financial situation.
Although not a complete list above, as you can see, making changes to your credit, income or available funds can still result in denial of your loan. Stay vigilant and when in doubt, ask your loan officer!
How Long Until I Can Close?
Typically, it will take a minimum of 3 business days to schedule your closing after you've acknowledged (signed) your Closing Disclosure.
Any time after that may be to accommodate additional funding conditions, a closing appointment or to accommodate all borrowers availability to sign documents.
A majority of the time, closing documents should be made available to the title office within 1-3 business days where there's no additional delays.
You've Made it to the Home Stretch
Now that you have your Final Approval, you are in the home stretch to completing your home loan!
You can look forward to a closing date right around the corner and to take possession of your home.
The next and final step is to review our guide to closing on your home.
Your mortgage guide to a successful home purchase! Throughout the loan process, I will be there as your Senior Mortgage Consultant to guide you.