Even after being Clear to Close, mortgage delays can still occur due to last-minute issues like title defects, delays even after being Clear to Close. These delays after Clear to Close often stem from third-party verifications, documentation errors, or changes in borrower finances. Understanding and proactively managing these risks can help ensure your mortgage closes smoothly and on time.
What Does “Clear to Close” Really Mean?
Clear to Close is a formal notification from your lender stating that all underwriting conditions have been met. It typically means:
- The lender has fully approved your loan application.
- Required documentation has been reviewed and verified.
- The loan is now ready to move into the closing and funding stage.
BUT: It’s not a guarantee that the closing will happen immediately or smoothly. Other third-party participants—title companies, attorneys, banks, and even you—can introduce delays.
What Can Cause Delays After Clear to Close?
Here’s an in-depth look at what could go wrong between Clear to Close and actually closing on your home.
1. Title Issues at the Last Minute
Even if a preliminary title report was clear, title companies often conduct a final title check just before closing.
Potential Problems:
- Undiscovered liens or unpaid taxes
- Judgments against the seller
- Boundary disputes or unclear property descriptions
- Unreleased previous mortgages
Example:
Imagine a seller had an old HELOC that was never officially released. A lien shows up 24 hours before closing, and the title company refuses to proceed until it’s resolved. Result? A 5-day delay.
What You Can Do:
- Work with a reputable title company
- Request an early copy of the title commitment
- Make sure the seller clears all known debts before closing
- Ask your agent to follow up on title clearance regularly
Related read: Legal Remedies for a Broken Chain of Title
2. Closing Disclosure Timing Errors
The Closing Disclosure (CD) is a federally required document that outlines your final loan terms. Lenders must deliver this at least 3 business days before closing.
Delays Happen When:
- Your CD is sent late
- A major change requires redisclosure (e.g., switching loan types, rate lock changes, or APR shifts by more than 1/8%)
- You fail to acknowledge receipt in a timely manner
What You Can Do:
- Ask your lender to send the CD as early as possible
- Review it thoroughly and acknowledge receipt ASAP
- Avoid last-minute loan changes
3. Employment or Financial Changes
Yes—even after CTC, lenders may reverify your employment or check your credit before funding the loan.
Triggers for Delay or Denial:
- Job change or job loss
- Reduction in work hours
- New debts (like financing a car or buying appliances)
- Large bank account withdrawals
What You Can Do:
- Don’t make any major career or financial changes until after closing
- Avoid new credit inquiries or financing purchases
- Maintain steady communication with your loan officer
4. Appraisal Issues or Expired Reports
If the appraisal was done more than 120 days ago, it may need to be updated or re-certified by the appraiser or lender.
Delays May Occur When:
- Your appraisal expires before the loan funds
- You need a re-inspection (e.g., repairs were required)
- A dispute arises regarding value
What You Can Do:
- Schedule the appraisal early in the process
- Ask your lender how long your appraisal is valid
- Address repair issues quickly if flagged in the original report
5. Wire Transfer and Funding Delays
Your down payment must be wired before or on the closing day. But wire transfers can be delayed for a variety of reasons:
- Daily cut-off times at your bank
- Mismatched name or account information
- International transfer delays
- Hold-ups from fraud protection protocols
What You Can Do:
- Send your wire transfer one business day in advance
- Double-check routing and account numbers
- Confirm details verbally with your escrow officer to avoid wire fraud
6. Document Errors or Missing Signatures
Seemingly small mistakes on final loan documents can delay closings:
- Misspelled names
- Incorrect property address
- Wrong loan amount
- Incomplete notary seals or missing initials
What You Can Do:
- Review a draft copy of your closing package in advance
- Ask your real estate agent to assist in document review
- Arrive at closing early to allow time for corrections
FAQs
Can I be denied a mortgage after being clear to close?
Yes. New debts, employment changes, or credit issues can prompt the lender to re-review your file.
How long does it take to close after CTC?
Typically 3–7 business days. However, any issues discussed above can delay that timeline.
What should I do if my CD is delayed?
Contact your loan officer immediately. Prompt action may still preserve your original closing date.
Is a final credit check required after CTC?
Not always, but many lenders perform a “soft pull” just before closing to confirm no major financial changes.
Final Thoughts
Being Clear to Close is a huge accomplishment—but not a finish line. With multiple parties involved, any last-minute issue can lead to delays.
Be proactive. Stay informed. Communicate frequently.
These simple steps can protect your investment and keep your path to homeownership on schedule.