Step 24 to Selling Your House: Buyer’s Mortgage Approval

Step 24 to Selling Your Home - Buyer’s Mortgage Approval

Mortgage Approval and Clear to Close

In the previous step you hired a cleaning company and now you’re one step closer to closing. Three days prior to settlement the buyers will receive the closing disclosure for their review. This is one of the last steps before settlement and the buyers should be well on their way to mortgage approval.

The finish line is in sight!

But there are a few more things that need to be taken care of before closing. The buyer needs to remove the financing contingency and they can only do that after they have commitment from their lender.

After the lender approves the loan, the buyer will get a commitment letter that stipulates the loan term and terms to the mortgage agreement. When your loan officer lets the buyers know they have the Clear to Close (CTC) that means the underwriter has approved all documentation necessary for the title company to schedule the closing and begin drafting the closing disclosure.

The buyer will also receive the closing disclosure from their loan officer at least 3 days before closing. The closing disclosure provides the buyers with the final details about the mortgage loan.

Disclosure form outlines
  • The loan terms
  • Projected monthly payments
  • How much the buyer will pay in closing costs and fees

They’ll receive verification of funding approval from their lender. This means they have officially been approved for the loan and we can move forward with settlement as planned. We will reach out to settlement agency to confirm the time and place of settlement.

In the next step, we’ll talk about the final walkthrough.

What Happens If the Buyer’s Mortgage Isn’t Approved?

Before reading the next line know this, THE OVERWHELMING MAJORITY OF HOME SALES CLOSE.

However, sometimes a buyer isn’t able to get final approval for their loan.

They can try to get a loan through another lender but if they aren’t able to get a loan their agent will send us a notice to void the sales contract. Their agent will also send documentation requesting the release of the EMD. If the contract was contingent upon the buyer’s loan approval they will more often then not get their deposit back.

We’ll change the status online back to ACTIVE and begin marketing your home again.

Questions? Please give us a call at 703-539-2053 or email us at [email protected].

L23 STEP 22 (1)



Step 1: Hire a Realtor

Step 2: You’ve Hired Your Realtor. What’s next?

Step 3: Declutter and Stage!

Step 4: Conduct a Pre-Listing Inspection

Step 5: Repairs

Step 6: Deep Clean

Step 7: Professional Photography

Step 8: We’ll Pre-Market Your Home

Step 9: We’re live on MLS, now what?

Step 10: Putting your home listing on 3rd party sites (Zillow,, Trulia, etc.)

Step 11: Time for Showings

Step 12: Week One on the Market

Step 13: You’ve got your first offer!

Step 14: We couldn’t come to agreeable terms with the buyer. What now?

Step 15: Offer was accepted! Congrats!

Step 16: The Home Inspection Period

Step 17: Financing and Appraisal Contingency Period

Step 18: Select a Title Company

Step 19: Scheduling closing date

Step 20: Hire Movers, Start packing!

Step 21: Utilities Transfer

Step 22: Home Owner’s Insurance Cancelation

Step 23: Hire a Cleaning Service

Step 24: Buyer’s Mortgage Approval

Step 25: Final Walkthrough

Step 26: It’s Closing Time!

Step 27: Review Us

Abraham Walker, Your Realtor

About the Author: The above article was written by Abraham Walker, Your Alexandria Virginia Real Estate Agent, helping clients market their homes to achieve high sales with a quick closing time is my main priority.

He’s the co-founder of Ask A Walker and can be found on YouTube, Facebook, and HERE on this blog.

Abraham can be reached via email at [email protected] or by phone at (703)539-2053.

He’s happy to answer all your real estate questions.

Thinking of selling your home? Check out my 20+ step process to selling your home. Or contact me now to start the home selling process. Same day appointments are available on a case by case basis.

Your Alexandria, VA Realtor, Abraham Walker, helps people sell and buy real estate in the following Northern Virginia area cities & neighborhoods: Kingstowne, Island Creek, Cameron Station, Overlook, Alexandria, Old Town, Belle Haven, Fort Hunt, Mount Vernon, Springfield, West Springfield, Burke, Lorton, Woodbridge, Lake Ridge, Manassas, Annandale, Fairfax, Arlington, McLean, Reston, Herndon and of course Vienna.