Receiving a 'Clear to Close' on your loan is a significant milestone in the home buying process, indicating you're nearing the final stage before your loan is funded and the scheduled closing date.

Here's what happens:

1. Underwriter's Final Approval: This status means that the underwriter has thoroughly reviewed and approved all necessary documentation, confirming that all loan conditions have been met.

2. Receipt of Loan Approval and Closing Disclosure (CD): You will receive an official loan approval notice from your lender. Alongside this, you'll be provided with a Closing Disclosure or CD. This important document outlines the final terms of your loan, including a detailed breakdown of costs, fees, and other financial specifics related to your mortgage.

3. Preparation of ALTA Settlement Statement: Concurrently, the Touchstone Closing team will prepare an ALTA (American Land Title Association) Settlement Statement. This document is crucial as it clearly outlines the distribution of funds within the transaction. It details where each dollar is going and specifies any amount you need to bring to the closing.

It's important to carefully review both the Closing Disclosure and the ALTA Settlement Statement to ensure you understand all the terms and financial details before the closing. These documents provide a comprehensive view of your financial obligations and the structure of your real estate transaction.