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Clearing Conditions For a Clear to Close
How long does it take to clear conditions for a clear to close?
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1 Reply
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The time frame of how long a borrower may take to clear the conditions given in a conditional loan approval will be different for all approval conditions. The time frame of clearing conditions on a conditional loan approval is put under a few days to a few weeks upon consideration of parameters like those discussed below:
Type and Complexity of Conditions:
Minor Conditions: This documentation is often sent to support additional documents. Minor conditions include updated pay stubs, bank statements, or even proof of insurance. Such conditions may take less than a week to clear.
More Complex Conditions: Other conditions seem more difficult due to verifying. Additional conditions, such as resolving credit issues, explaining exorbitant deposits, or getting the extra property surveys performed, depend on a case-by-case scenario.
Your Responsiveness
It is best to provide the requested documents and particulars as soon as possible. Getting the requested documents as soon as humanly possible without delay enables the conditions to be cleared sooner. Reducing response time may also reduce the time it takes to clear the conditions.
Lender’s Efficiency
This is also the case when it comes to how fast the lender reviews and processes the documents you have submitted regarding the condition. Other lenders may do it within a day or two, while other lenders may take a week or so.
Underwriting Workload
When the underwriting department is busy with many loans, reviewing conditions and recommending their clearance may take too long. This is usually the case when that side is busy.
Role of the Third Party
In cases where such clearing conditions entail third-party engagements like sourcing a fresh appraisal or requesting a payoff letter from another lender, the timeline is generally dependent on the speed at which these particular third parties are able to furnish the required details.
Typical Timeline:
Quick Turnaround: 2-3 days on straightforward conditions.
Average Time: 5-10 days is typical in most cases.
Longer Scenarios: 2 weeks and above. All conditions are established if they are intricate or if the conditions of collecting or examining the required documentation experience delays.
Tips to Expedite the Process:
Organize Documents: Organize and prepare all required financial documents.
Stay in Touch: Stay in touch with your loan officer, and do not hesitate to provide any required information when requested.
Follow-up: Call in occasionally to check if everything is running smoothly.
You will receive a “clear to close” once all the conditions have been answered, and this will lead you to the next step of booking the closing date.