Mortgage Final Approval Explained

Introduction

Final approval (often called clear to close) means the lender has approved your loan and all conditions have been satisfied. You can proceed to closing. You will receive the Closing Disclosure and schedule the signing.

From Conditional to Final Approval

After conditional approval, you (and the lender) work to satisfy the conditions—appraisal, title, additional documents. Once everything is complete, the underwriter issues clear to close. That is final approval.

See Mortgage Conditional Approval Explained and Mortgage Approval Process

What Happens After Final Approval

The lender prepares the Closing Disclosure and sends it to you at least 3 business days before closing. You review it, compare it to your Loan Estimate, and schedule closing. At closing, you sign the documents and the lender funds the loan. See Mortgage Funding Process and What Happens at Closing

Frequently Asked Questions

What is final approval?

Final approval (often called "clear to close") means the lender has approved your loan and all conditions have been satisfied. You can proceed to closing. You will receive the Closing Disclosure and schedule the signing.

What is the difference between conditional and final approval?

Conditional approval means you are approved subject to conditions (appraisal, title, documents). Final approval means those conditions have been met and the loan is approved for closing.

Can final approval be revoked?

Yes. If your financial situation changes before closing (new debt, job change, large deposits), the lender may perform a final check and could revoke approval. Avoid major financial changes between approval and closing.

When do I get the Closing Disclosure?

You must receive the Closing Disclosure at least 3 business days before closing. It shows the final loan terms and costs. Review it and compare to your Loan Estimate.