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Once final underwriting signs off, a credit committee or head of credit often gives a last review, especially for loans over about $2 million or with exceptions. Then the lender issues clear to close.
At this stage in the DSCR Loan process, the finish line is in sight. The appraisal has been completed and reviewed, your underwriting conditions have been satisfied and all of the property- and borrower-level checks are complete. Now comes the critical phase where the lender moves from a “conditional approval” to a final credit approval, the exact closing and funding logistics are set, the numbers on your settlement statement are finalized and your actual loan documents are drafted.
This stage is both highly procedural and highly consequential, because while most of the heavy lifting is behind you, a misstep here can still delay (or even derail) closing. Understanding exactly what happens in the days between final underwriting sign-off and walking out of the closing table with keys or cash in hand is the mark of a savvy and successful investor.
Once underwriting has cleared your file, the lender, title/escrow company, and sometimes your broker will coordinate to set the official closing date. This date is when you will sign the final loan package and close the loan. However, the specific “Closing Date” is often influenced by three practical constraints. One is funding readiness, as the DSCR Lender will only schedule a closing once all conditions are satisfied, the closing package is prepared, and the funding wire can be sent. Additionally, a key consideration is the Title Company’s Calendar, the reality is that their availability matters. High-volume markets can book up fast toward month-end, and borrowers often compete for those same end-of-month slots. Finally, rate lock expiration dates can come into play as many DSCR Loans are “locked” for a specific window (e.g., 30 days) and closing before that lock expires can avoid costly extension fees or unwanted spikes in rate or fees.
Another important aspect of DSCR Loans is the “Funding Date,” which actually differs from the Closing Date. In most DSCR Loans, funding, or the actual release of DSCR Lender funds to the seller (in a purchase) or to you/your payoff lender (in a refinance), happens one business day after closing. This one-day gap is standard because the closing package must be reviewed by the DSCR Lender after signing to ensure no last-minute errors or missing signatures before funds are wired.
In some states, such as “wet funding” states, funding can occur the same day as closing, but for DSCR Loans the extra day is the industry norm and often baked into investor timelines. Planning for this ensures your purchase contract, refinance payoff, and moving logistics are aligned.
While the underwriter has already approved your file, most DSCR Lenders have one last gatekeeper: a Credit Committee or Head of Credit sign-off. This is especially common for large-balance DSCR loans (e.g., over $2M) or if there are exceptions to standard guidelines. This can serve as a final look to make sure that exceptions have been properly documented and cleared, and so the DSCR Lender can avoid potentially costly mistakes.
Additionally, in times of heated markets and end-of-month rushes, where both borrowers and lenders are scrambling to get loans closed, there may be items flagged for last-minute reviews or “funding contingencies,” such as approving funding on the condition that a missing entity document comes in the day of close. In these cases, this last barrier can provide one additional check to make sure nothing slips through the cracks in a frenzied rush.
Once this review is complete, the DSCR Lender issues the magic words: Clear to Close.
In the DSCR Loan context, “Clear to Close” means all underwriting, compliance, and management-level approvals are done and the closing package can be sent to the title company. Unlike in consumer mortgage lending, there’s usually no waiting period, like the three-day closing disclosure review period required under TRID regulations.
While the exact order may differ from lender to lender, once "clear to close" has been issued, there are three general processes that must be completed, typically by the DSCR Lender's designated "closing team." These three end-of-process tasks include:
Once these three final processes are completed by the lender, the actual closing and funding of the loan is finally ready!
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