Origination ActivitiesQuestion 249 of 400
A loan is 'cleared to close.' What does this status indicate?
a.The borrower has made the first mortgage payment
b.The appraisal has just been ordered
c.All underwriting conditions have been satisfied and the loan can proceed to closing
d.The interest rate has been locked for the first time
Explanation
'Cleared to close' means underwriting has reviewed and approved all conditions, so the loan can move to the closing/settlement stage. It does not refer to ordering the appraisal, locking the rate, or making a payment.
Practice all 400 questions free — no signup required.
Related questions on this topic
- At funding, the settlement agent disburses loan proceeds. In a typical purchase, funds are primarily disbursed to:
- A borrower earns a $3,000 monthly bonus that has been consistent for three years and is likely to continue. How may an underwriter treat this bonus income?
- An appraiser uses the sales comparison approach on a single-family home. This approach primarily estimates value by:
- Under RESPA Section 8, a title company offers a loan originator a cash payment for each referral of settlement business. This arrangement is:
- A borrower's back-end debt-to-income ratio is 52%, above program guidelines. Which action could most directly help the borrower qualify?
- An FHA loan is run through an automated underwriting system. Which scorecard evaluates the credit risk for FHA loans?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review