What Is a Clear to Close (CTC) in NH Real Estate?

🏡 What Is a Clear to Close (CTC) in NH Real Estate?

One of the most exciting milestones in the New Hampshire homebuying process is receiving the Clear to Close, often called the CTC.

This notification means the lender has completed underwriting, verified all documents, and officially approved the buyer’s mortgage.

Once the CTC is issued, the buyer is only days away from receiving the keys.

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What Does “Clear to Close” Mean?

A Clear to Close means:

✔ The buyer’s loan is fully approved

✔ All underwriting conditions have been satisfied

✔ All documents have been reviewed and accepted

✔ The lender has authorized the closing department to prepare final paperwork

It is the last major checkpoint before the closing day.

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What Happens Before You Get Clear to Close?

To reach CTC, several steps must be completed:

1. Full Underwriting Review

The underwriter verifies:

✔ Income

✔ Employment

✔ Assets

✔ Credit

✔ Debt-to-income ratio

✔ Appraisal results

✔ Title report

2. Clearing All Conditions

This may include:

✔ Updated bank statements

✔ Verification of employment

✔ Insurance binder

✔ Final appraisal review

✔ Proof of funds for closing

3. Final Loan Approval

Once all conditions are met, the loan moves to the lender’s closing department.

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What Happens After Clear to Close?

Once the lender issues the CTC:

1️⃣ The closing disclosure (CD) is finalized

2️⃣ The lender sends closing documents to the title company or attorney

3️⃣ The buyer must sign the CD (typically 3-day waiting period for most loans)

4️⃣ The closing date and time are confirmed

5️⃣ Funds are prepared for wire or cashier’s check

6️⃣ Final walk-through is scheduled

After this, you’re ready to close.

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Can a Clear to Close Ever Be Delayed?

Yes — but it’s uncommon. Delays may occur if:

❌ The buyer changes jobs

❌ New credit is opened

❌ Bank account balances drop unexpectedly

❌ Title issues arise

❌ Insurance coverage is incomplete

Buyers should avoid major financial changes between CTC and closing.

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Why Clear to Close Matters in NH Real Estate

Receiving CTC gives all parties confidence that the transaction is ready to finish.

It helps:

✔ Buyers plan their move

✔ Sellers finalize packing

✔ Attorneys and title companies prepare documents

✔ Agents make sure deadlines stay on track

It is the final green light before closing.

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Bottom Line

A Clear to Close is the final mortgage approval in NH real estate, confirming that the lender has reviewed everything and the buyer is fully approved. Once CTC is issued, closing is typically just a few days away — bringing the transaction to the finish line.

Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com