Veteran Real Estate Broker Curtis Knight explains the meanings of the Commitment Letter, as well as Clear to Cose. These are both part of a real estate transaction. The commitment letter typically arrives approximately seven days before closing and clear to close is announced shortly thereafter.
- Commitment Letter: A mortgage commitment letter signifies the lender’s intention to provide a loan, contingent on certain conditions being met.
- Clear to Close: This is a crucial milestone indicating that all necessary loan conditions have been satisfied, and the loan is ready to be finalized.
- Closing Disclosure (CD): After receiving “clear to close,” you’ll receive a Closing Disclosure (CD) detailing the final loan terms and costs.
- 3-Day Rule: Federal law mandates that you receive the CD at least three business days before the scheduled closing date, allowing you time to review the details.
- Closing: This final step involves signing the loan documents, transferring funds, and officially taking ownership of the property.
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