Clear to close.

You'd think it would mean you can close immediately.

It doesn't.

It just means underwriting is done looking it over. Lenders may take 24-48 hours in preparing closing documents (they don't really take that long, they just have a small team that prepares documents and it waits in line)

Hopefully you're reading this because your lender said you're clear to close, and you might have a few additional questions.

I'll try to answer a few here.

Can they take it back saying "just kidding"?

Yes, they could.

Random things could make it get sent back to underwriting.

Here's an example:

Say your homeowners insurance policy is effective 2 days after closing...

Well, they need it effective the day you close.

You ask the insurance agent to get it adjusted, and the agent says "I need to run this through underwriting again"

Then your insurance policy comes back at a higher premium, even though you're only shifting the effective date.

That increase in premium increases your monthly mortgage payment.

Mortgage underwriting now has to make sure that this new payment doesn't affect your qualification.

How do I send the funds?

Usually by wire transfer.

If cashiers checks are accepted, they'll like need to be done far in advance.

Where do I send the funds?

The title company will give you wiring instructions. (beware of wire fraud)

The money goes to the title company, and the title company is the one who handles the exchange of funds between buyer, seller, and lender.

When do I send the funds?

As soon as you have a final figure, you can send the funds. You could even wait until closing day.

If you are expecting to occupy the house (get the keys) the same day you close, then I'd suggest sending the money a little earlier. Wire transfers have cutoff times, and if you send after a deadline, the money might not arrive until the next day.

For more info on closing day, check out this post I made a bit ago.