Final Loan Approval and Closing Prep: What to Expect Before You Get the Keys

You’ve found your home, made an offer, completed inspections—and now you’re nearing the finish line. The last major steps before becoming a homeowner are final loan approval and closing preparation.

Here’s what to expect during this final phase, including an important document you’ll receive: the ALTA Settlement Statement.

1. Final Loan Approval (Also Called “Clear to Close”)

Once your offer is accepted and you’re under contract, your lender works to move your mortgage application from conditional approval to final approval. This process includes:

• Verification of income, assets, and employment

• Appraisal review to confirm the home’s value supports the loan

• Review of inspection reports (if applicable)

• Updated credit check to ensure no major changes

If everything checks out, the lender will issue a “Clear to Close.” 🎉

What You Should Do During This Stage:

• Avoid large purchases (no new cars or furniture!)

• Don’t open or close credit accounts

• Respond to lender requests promptly

• Maintain stable employment and finances

Any significant financial changes could delay—or even jeopardize—your final approval.

2. Prepare for Closing Day

Once you’re clear to close, the closing process officially begins. This is the final step where everything comes together—loan, legal documents, title transfer, and keys in hand.

Here’s what to expect in the days leading up to closing:

Review the Closing Disclosure

At least 3 business days before closing, your lender must send you a Closing Disclosure. This document details your final loan terms, interest rate, monthly payment, and total closing costs.

Review it carefully. If anything looks off, let me or your lender know immediately so it can be corrected before closing.

Confirm Your Final Cash to Close

Your Closing Disclosure will specify the exact amount of money you need to bring to closing. This typically includes:

• Down payment

• Closing costs

• Prepaid taxes and insurance

This amount must usually be paid via certified funds or wire transfer, not a personal check. Your closing attorney or title company will provide detailed instructions.

Schedule a Final Walkthrough

Within 24–48 hours before closing, you’ll do a final walkthrough of the home. This gives you a chance to confirm:

• Repairs have been made (if negotiated)

• The home is in the agreed-upon condition

• No unexpected damage has occurred

It’s your last look before signing on the dotted line.

3. What Is an ALTA Settlement Statement?

In addition to the Closing Disclosure, you’ll receive an ALTA Settlement Statement. This document, developed by the American Land Title Association (ALTA), provides a detailed breakdown of all the fees and charges associated with your real estate transaction.

Key Features of the ALTA Settlement Statement:

• Itemized List of Costs: Includes loan charges, title fees, taxes, commissions, and other expenses.

• Separate Columns: Clearly delineates costs for the buyer and the seller.

• Transparency: Offers a comprehensive view of where every dollar is going.

While the Closing Disclosure focuses on your loan details, the ALTA Settlement Statement provides a broader picture of the entire transaction.

4. When Will You Receive the ALTA Settlement Statement in Tennessee?

In Tennessee, it’s standard practice for the title company or closing attorney to provide the ALTA Settlement Statement at or just before closing. This allows you to:

• Review all charges and credits

• Ensure accuracy and transparency

• Ask any final questions before signing

It’s advisable to request this document a day or two before closing to give yourself ample time for review.

5. Closing Day: Sign, Pay, and Celebrate

On closing day, you’ll meet at the title company or closing attorney’s office to sign all legal documents and finalize the transaction. You’ll sign:

• Your loan documents

• Title and ownership transfer documents

• Disclosures and settlement statements

Once everything is signed, funds are received, and the deed is recorded, you get the keys to your new home! 

Final Thoughts

The final loan approval and closing process can feel like a whirlwind—but it’s also the most exciting part of your journey. With the right preparation and guidance, you can move through it confidently and smoothly.

Buying a home in Middle Tennessee?

I’ll walk you through every detail of the closing process so there are no surprises—just celebration. From contract to keys, I’m here to make sure you feel supported, informed, and ready to step into your new home.

Let’s get you home.