Clear to Close (CTC) (CTC)
Direct definition
The point at which underwriting has approved the loan and closing can be scheduled.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Clear to close means the lender has satisfied every condition — income, assets, appraisal, title, insurance — and only closing documents remain.
Why it matters
It's the green light borrowers wait for; closing typically follows within a few days.
Where you may see it
- Lender notification
- Closing Disclosure
- Underwriting conditions
A real-world example
You receive the CTC email Tuesday and sign at the closing table Friday morning.
Educational and illustrative only
A common misunderstanding
Clear to close doesn't mean closing has happened — it means underwriting is finished and closing can now be scheduled.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026