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After underwriting issues a Clear to Close (CTC), the closing team prepares final loan documents, the title company coordinates the transaction, and the lender wires funds at closing. For purchase transactions, the buyer receives the keys and the seller gets paid. For fix and flip deals, the rehab holdback is not wired at close — it is disbursed in draws as renovation milestones are completed.
A Clear to Close (CTC) is underwriting's confirmation that all conditions have been satisfied and the loan is approved to fund. Every stip on the conditions list has been cleared. The deal is moving to the finish line.
CTC does not mean funded. It means you are in the closing phase — a distinct phase with its own players, timeline, and requirements.
Once CTC is issued, the lender's closing department takes over from underwriting. The closing team:
This phase typically takes 1-3 business days for straightforward deals. Complex deals or deals with title complications can take longer.
Title and escrow is the neutral third party that handles the legal transfer of property and the secure disbursement of funds. Everything flows through them at closing:
Escrow officer: Coordinates the transaction — makes sure the lender documents are complete, collects signatures, and manages the wire transfers in and out.
Title examiner: Confirms the title is clean before closing — no outstanding liens, ownership disputes, or encumbrances that would prevent the lender from taking a valid first lien position.
Do not ignore title issues. A title problem discovered the day before closing can push the deal by days or weeks. If title flags anything during underwriting, address it immediately — do not wait.
On closing day, the borrower (and any guarantors) sign the loan documents at the title company. This includes:
Signing typically takes 30-60 minutes depending on the deal complexity and document volume.
After signing, the escrow officer confirms all funds are in order, the lender wires the loan proceeds to the title company, and the title company disburses accordingly:
This is one of the most common surprises for first-time hard money borrowers, so be explicit with your borrowers upfront:
On fix and flip loans, the rehab holdback is NOT wired at closing. Only the acquisition portion of the loan funds at close. The holdback — the portion designated for renovation — is held by the lender and released in draws as construction milestones are completed and verified.
Example: A $300,000 total loan with $200,000 for purchase and $100,000 for rehab. At close, the borrower receives $200,000. The $100,000 holdback is released in stages as renovation work is completed and inspected.
If your borrower expects to receive all $300,000 at closing and does not have the cash to start renovations, that is a problem that needs to be solved before the closing table.
For fix and flip and construction deals, draws happen after closing as renovation milestones are reached. The typical process:
How fast draws process varies significantly by lender. Some fund draws in 24-48 hours. Others take 7-10 days. If your borrower is cash-flow-constrained during renovation, slow draw processing is a real problem. Ask about draw timelines before you select a lender.
The closing phase is not the time to go quiet. A missing signature, a document that needs to be re-executed, or a question from the title company that does not get answered for two days can push a closing date by a full business day — and if a seller has a hard deadline, a one-day slip can kill the deal.
Be the broker who answers the phone, responds to emails within the hour, and knows the status of every open item. That responsiveness is what separates brokers who close from brokers who have a lot of deals in underwriting that never seem to fund.
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