Who you’ll hear from:
Once your loan is cleared to close, it takes a few days to prepare closing documents and set up your signing. To keep things on track, please watch for messages from our team and respond within 24-48 hours.
And one last (but important!) note: Watch for a link to your initial Closing Disclosure (CD). Follow it and click to sign right away. The numbers are a draft, but acknowledging receipt of the initial CD starts the clock on a required timeline for closing.
If you have any questions, we’re here to help. Conditional approval means we’re in the home stretch…we’re getting closer to closing every day!
“Are we there yet?”
Understanding Your Closing Disclosure
Closing Disclosure (CD) is the last form we use to share the details of your loan terms. You’ll notice a CD looks a lot like the Loan Estimates we send we sent earlier. And the numbers transfer directly from the LE to the CD.
Download this PDF for a comprehensive explainer and detailed section-by-section walk-through of the CD.
There’s a lot here, so if you’re short on time or feel like you’ve already got this just scan for the 🚩 red flags. They highlight the common spots that raise questions.
Another form…but why?
If the forms are similar and the numbers are the same, why bother with the switcheroo? That’s a good question with two answers:
The first is technical: it’s the law! You must receive a CD at least three days before you sign loan documents. No CD, no closing.
The second is practical: it takes two to tango! A Loan Estimate is designed to show a home buyer all the relevant loan information. But at closing, the settlement agent must also do some accounting for the seller. The CD includes both a buyer’s and seller’s side.
Timing is key
You must sign to acknowledge receipt of your initial CD at least 3 days before you can legally sign closing documents (excluding Sundays and holidays).
Because of the federally mandated waiting period, we like to send the initial CD as early as possible and we encourage you to sign it right away. Watch for the email inviting you to sign your CD, follow the link, and click to sign. Easy peasy.
Don’t fear commitment
And don’t worry! Signing the initial CD doesn’t obligate you to anything (at all) (promise).
Signing a Closing Disclosure…
If you and the seller are still negotiating some details or you’re on the fence about moving forward, it may feel weird to sign a Closing Disclosure. We get it.
But, if things come together after all the negotiating, the seller may not be willing to extend closing. Signing the initial CD is insurance against one easily avoidable delay to closing.
Your CD will change
Despite the official-sounding name, a Closing Disclosure isn’t a one-and-done document. You’ll receive at least two – and maybe three or four:
If you and the seller are still negotiating some details or you’re on the fence about moving forward, it may feel weird to sign a Closing Disclosure. We get it.
But, if things come together after all the negotiating, the seller may not be willing to extend closing. Signing the initial CD is insurance against one easily avoidable delay to closing.
What might change in my CD?
When preparing a CD, we combine the most accurate data with estimates for any figure we don’t yet know. Placeholders we fine-tune as we go may include:
We know how important it is to have numbers you can rely on, so we err on the safe side whenever we don’t know a fee. We’ll do our best to point out any consequential, difficult-to-predict items. Homeowners insurance and HOA demands are always at the top of that list.
In a nutshell
The Closing Disclosure starts as a solid outline of the numbers and gets updated on the road to closing. Signing the initial Closing Disclosure upon receipt helps avoid a delay to closing (but doesn’t obligate you to anything). The final Closing Disclosure with fully updated figures comes a day or two before your signing date. If you have questions, we’re always here to help.We know how important it is to have numbers you can rely on, so we err on the safe side whenever we don’t know a fee. We’ll do our best to point out any consequential, difficult-to-predict items. Homeowners insurance and HOA demands are always at the top of that list.
FAQ: from “conditional approval” to “clear to close”
We’re in the home stretch! Your loan is approved, and the only hurdle between us and closing is a list of underwriting conditions. Here’s a guide to common questions about conditional loan approval, gathering underwriting conditions, the Closing Disclosure, and final underwriting approval.
Conditional approval & underwriting conditions
My loan is approved… nice! Does that mean I can close right away?
Not quite yet! Conditional approval is an important milestone, but we have more work to do before closing.
Multiple rounds of underwriting are normal and nothing to worry about. Most loans go through two or three rounds of underwriting.
• Initial – The first round of underwriting secures approval with a list of “conditions” to clear before closing.
• Clean-up—If we find ourselves waiting for a straggling condition or two, we may send what we have in for sign-off to tidy up your approval.
• Final—As soon as the last conditions are in hand, we submit them to underwriting. The underwriter signs off and issues “clearance to close” or CTC.
We’ll coordinate behind the scenes and contact you whenever we need your assistance with information, a document, or a signature.
What does “conditional approval” mean?
Conditional approval means an underwriter has reviewed your application and issued an initial loan approval. (Yay! 🥳) But our work isn’t done. (Okay. 😅)
Conditional approval is a green light with a to-do list attached – the to-dos are “conditions” we must clear before we’re released to close.
What kind of underwriting conditions should I expect?
Underwriting conditions follow a few common themes:
Updated documentation
A document has expired, or we need information from a more recent version of a pay stub, bank statement, or other financial paperwork.
We’re waiting
Some things take time. Maybe you’ve requested a 401k loan, are selling stock or another property, are clearing pre-employment contingencies for a new job, or waiting on a first distribution from a retirement account. Pending related paperwork will be a condition.
Piggyback requests
Sometimes, satisfying one condition begets another – maybe your bank statement shows a large deposit, or your job offer includes pre-employment contingencies. We don’t like these conditions any more than you do! (This is why we encourage you to follow the tips in Help Us Help You.)
Property-related items
When we receive initial approval, property-related items like the appraisal, title report, homeowners’ insurance binder, or (if you’re buying a condo) HOA documents and approval are usually still in the works.
Final verifications
Certain things can’t be done until closer to closing. Re-verifying your employment and documenting the transfer of funds to closing are standard conditions we’ll clear in time.
Why are you asking me for things I already provided?
Gathering underwriting conditions can feel like deja vu all over again.
We shouldn’t ever ask you for exactly the same document twice, but some items may be similar or relate to something you shared earlier. This is because underwriting conditions often involve updating, clarifying, or verifying details on documents and information you already provided. We may need an updated version if a document hits its “sell-by” date, a letter, or further clarification.
These requests can feel redundant or excessive (even a wee bit invasive), but try to be patient. Loan guidelines are full of rules and requirements, and it’s the underwriter’s job to ensure we check every box before releasing us to close.
What if my income or employment changes before closing?
Let us know immediately! Switching employers, reducing your hours, taking unpaid leave, or other changes to your income and employment will impact your loan approval.
We must verify employment right before closing so we’ll eventually learn about any changes. The sooner we know, the more time and options we’ll have to keep your loan on track.
How long does it take to clear underwriting conditions?
It depends! Some conditions are simple and quick. You can probably provide an updated pay stub or bank statement in minutes. But, other conditions are more complex, may not be available yet, or may require waiting for a third party to get back to us.
Third-party conditions are often the most time-consuming: Appraisers are independent contractors. We may need your HR department to complete a Verification of Employment. Buying a condo means waiting for an HOA to provide documents.
We’ll work hard to keep timelines on track. You can help by responding quickly when we ask for information, a document, or signatures. We’ll strategize with you and your real estate agent in the rare instance that a condition could delay closing.
Who will I be working with at this stage?
It depends on which method we’re using to process your loan:
Traditional processing: Upon receipt of conditional loan approval, your Mortgage Consultant (MC) will introduce you to a Loan Coordinator (LC), who’ll be your guide to the rest of the process.
Same Day Mortgage: You’ll continue working with the same Associate Underwriter.
Closing Disclosure (CD)
What is a Closing Disclosure (CD)?
The Closing Disclosure is the final version of your loan terms and closing costs. The numbers should be familiar – you’ve seen them already on loan summaries and Loan Estimates.
The numbers don’t change – they’re consistent from one document to the next. If it helps, picture the numbers going through little wardrobe changes:
Loan Summary
This format is used while you’re shopping and any time we need to whip up numbers quickly or run a hypothetical. It’s sharp and tidy but informal—like jeans and a T-shirt (but new and well-cut) (not that baggy, stained one you picked up in Cabo 10 years ago).
Loan Estimate (LE)
The LE is the first official version of the numbers, sent after we know what home you’re buying and the terms of your offer. It’s more dressed up – like business casual on the day you’re making a presentation at work.
Closing Disclosure (CD)
The CD is the final, formal version of the figures – dressed to the nines, looking Good, headed out to a glitzy event (maybe with some extra hair product goin’ on). (And what’s a bigger event than buying a home?)
You may be thinking, “But why?” and asking, “Wouldn’t it be more straightforward and less confusing to use one format for the numbers from start to finish?”. You’ll get no argument from me. Yes, that would be simpler.
Alas, we have no choice. The LE and CD are legally mandated documents that are binding and have strict timelines attached to them. We can’t provide either until we know details about your home purchase.
But we can’t leave you hanging in the meantime – you need numbers to understand your loan options and make decisions. So, we’ve created a Loan Summary to serve as a stand-in until the official documents can take over.
Why do I have to sign a Closing Disclosure before closing?
It’s the law! The TILA-RESPA Integrated Disclosure Act (aka TRID*) requires that we provide an initial CD at least 3 days before you sign loan documents at closing. Signing the CD is proof of TRID compliance.
Counting “days” under TRID is funky – we don’t count Sundays and Federal holidays. Here’s how this looks if you sign the initial CD on Thursday, but Monday is a Federal holiday:
Thursday: Sign your initial CE – Day Zero
Friday: Day One
Saturday: Day Two
Sunday: Always skipped
Monday: Skipped due to the holiday
Tuesday: Day Three — You can legally sign loan documents today (or later).
We don’t like worrying about TRID timing issues causing a delay to closing, so we’ll send your initial CD as early as possible.
*TRID implementation required massive system and software upgrades. Stressed-out lenders took to calling it “The Reason I Drink.” I tell ya…we can’t even crack a joke without an acronym.
Does signing the Closing Disclosure mean my loan is officially done?
Nope! Your signature on the initial CD starts a legally required countdown before you’re allowed to close, but dominos still have to fall before we can close:
• Clearing underwriting conditions.
• Preparing the final Closing Disclosure (in collaboration with the closing agent).
• Preparing loan documents and sending them to the closing agent.
• Delivering money to the closing agent and signing loan documents.
• Wiring loan funds and recording.
Does signing the Closing Disclosure obligate me to close?
Nope! Signing the initial Closing Disclosure acknowledges receipt of the document — that’s it.
Confirming receipt of the initial CD is essential. It starts the clock on a 3-day waiting period, after which you are legally allowed to close. Your only obligations are spelled out in the contracts with your seller and real estate agent and don’t involve your lender.
Why do numbers on Closing Disclosure change before closing?
When we prepare a Closing Disclosure (CD), we use the best available numbers, but there may be loose ends or items in flux. Where a number is unknown, we use an estimate.
Because we understand how important accurate numbers are for your planning, we err on the safe side whenever we don’t know an exact amount. We’ll also highlight any consequential, difficult-to-predict items (like homeowners insurance and HOA demands) still up in the air.
The most common costs that change between the initial and final CDs include:
• Homeowners insurance premiums
• Seller credits
• Property tax prorates and other prepaid costs
Even the “Final CD” signed at closing may include estimates adjusted after closing.
When will I get my “Final-Final” Closing Disclosure?
The title company or attorney who settles your transaction will issue a (for real) Final CD, reflecting any post-closing adjustments within a few weeks of closing.*
*Oregon Fun Fact: Buy in Oregon in September or October, and your Final CD may not roll in until November. But it’s likely to show up with a refund check.
What if I get a seller credit or the price changes?
That’s okay! We like to send the initial CD early, so you and the seller may still be going back and forth. Please sign the initial CD to acknowledge receipt (and get the clock running on the pre-signing mandatory waiting period).
Keep us posted on negotiations, and send any addenda to your contract as soon as the ink dries. Once you’ve finalized the terms, we’ll update your loan (and CD) to match.
When will I know how much money to bring to closing?
The closing agent (title company or attorney) will usually give you the final, to-the-penny amount of cash to bring to closing one or two days before your closing date.
This may feel last-second, but the final numbers require collaboration between us and the closing agent – something that can’t happen until we prepare loan documents for signing. So, the quicker we clear conditions and secure clearance to close, the sooner you’ll know the to-the-penny amount for closing.
(In the meantime, we know how important the numbers are for your planning, so we work hard to provide you with the most accurate estimate we can.)
Submitting for final underwriting approval
What happens after every underwriting condition is met?
We can submit your loan for final underwriting approval (at last!), where the underwriter will sign off and issue clearance to close (CTC) (woo hoo!). This is our green light to prepare loan documents and send them to the closing agent (title company or attorney), who will schedule your signing.
How long does final underwriting take?
Underwriting turn times vary based on the loan program, current loan volume, and complexity of the conditions – but 24 to 48 hours is typical. If we anticipate a longer-than-normal turnaround time, we’ll let you know and plan timelines accordingly.
Can change my down payment?
Yes… to a point. We can work with you to adjust your down payment (and other loan terms) anytime before submitting conditions for final underwriting approval.
After final loan approval, we prepare loan documents for signing, and the terms of your loan must be final. Any changes rescind your loan approval, requiring re-submission to underwriting, and will likely delay closing.
Can anything still go wrong at this stage?
We’re just superstitious enough never to say “never.” But… once we have your conditional loan approval, we’ve got a roadmap to closing. Satisfy the conditions, and we’re done!
The risks at this stage are:
Not satisfying a condition
If a condition requires something you can’t provide, we may need to find an alternative solution or adjust the loan.
A significant change in your financial situation
Switching jobs, applying for new debt, or moving large sums of money may (at best) create additional conditions or (at worst) invalidate your loan approval.
Property-related matters
The appraisal, insurance, title work, and HOA documents often arrive later and can raise issues we have to address after receipt of condition approval.
Let us know if you have concerns about satisfying a condition. Avoid big financial moves. Read Help Us Help You for tips to keep things on track. And most of all, keep lines of communication open — we’re here to help!
What should you do to keep things on track?
Explore our PDF library…
We have a library of downloadable PDFs, explaining some of the more mystifying parts of the mortgage process.
