There are different stages of conditions, that include : Prior to underwriting, Prior to Docs and Prior to Funding.
If the loan has cleared to close, that means that all borrower conditions have been met and the lender is prepared to lend the money to the borrower.
Prior to Funding conditions typically include:
1. The closing attorney must prepare the HUD Settlement Statement according to the lender's instructions and send it for the lenders' approval.
2. The closing agent verifying all signatures, accepting identification and notarizing as necessary.
3. The closing agent verifying homeowners policy is paid.
4. The closing agent verifying other property specific items (flood insurance).
5. If the purchase is contingent on the sale of another property or that monies for closing are coming from that sale, the closing attorney may need to verify that the borrower closed on that sale and received the monies received from it.