The weeks between your accepted offer and closing day are filled with important milestones. Each step must be completed on schedule to reach closing on time. Your real estate agent and lender coordinate these activities.

The Closing Disclosure Arrives

Federal law requires your lender to provide a Closing Disclosure at least three days before your closing date. Review this document carefully since it is the most important pre-closing document you will receive for your home purchase. It details every financial aspect of your mortgage and the purchase contract for closing on a home.

Review the Closing Disclosure carefully. Compare it to the Loan Estimate you received when you applied for your mortgage. The interest rate, loan amount, and monthly payment should match what you expected. Closing costs should be close to the original estimate. Ask your lender about any discrepancies immediately.

Title Search and Insurance

The title company or escrow company conducts a thorough search of public records to verify the seller has clear ownership. They check for liens, unpaid taxes, easements, and any claims against the property. Title insurance protects you against any undiscovered issues that could challenge your ownership when buying a home. Your real estate professional coordinates closely with the title company throughout this process.

Your lender requires a lender's title insurance policy. You also have the option to purchase an owner's title policy. The owner's policy protects your equity and is generally recommended. Title insurance is a one time cost paid at closing.

Final Walkthrough

Schedule your final walk-through of the home 24 to 48 hours before closing. This is your last opportunity to verify the home's condition before taking ownership. Keep a copy of the purchase contract handy during your walk-through. Confirm the seller completed all agreed upon repairs days before your closing date. Check that included items remain in the home. Look for any new damage.

Test all systems during the walkthrough. Turn on every light switch, run every faucet, flush every toilet, and test every appliance. Open and close windows and doors. Run the heating and air conditioning. If you find problems, notify your real estate agent immediately so they can address them before closing.

Arriving prepared to closing prevents delays and ensures a smooth signing process. If you're buying a home, you'll need to bring several important items. Your real estate agent and the seller's agent along with the closing agent will confirm exactly what you'll need, but here is the standard list.

Valid Government-Issued Photo ID

Bring your driver's license, passport, or state issued identification card. The closing agent verifies your identity before you sign any documents. If two people are on the loan, both need valid identification. Make sure your ID is current and not expired.

Certified or Cashier's Check

Your closing agent provides the exact amount needed at closing. This covers your down payment, closing costs, and any prepaid items minus your earnest money deposit. Personal checks are generally not accepted for these amounts. Wire transfers are also common, but verify wiring instructions directly with your closing agent to avoid fraud.

Proof of Homeowners Insurance

Your lender requires evidence that you have homeowners insurance in place before they will fund the loan. Provide the insurance binder or declarations page. This document shows the coverage amount, premium, and policy effective date. Set this up at least a week before closing.

Additional Documentation

Bring any documents your lender or closing agent specifically requested. This might include updated bank statements, employment verification letters, or other items identified during underwriting. Having extra documentation available prevents potential delays on closing day.

There's a lot of paperwork when you close on a house. Expect to sign a significant number of final documents at closing. The average time to close is 30 to 45 days from offer acceptance. The closing agent or attorney walks you through the process of closing step by step. Don't be afraid to ask questions about anything. Understanding these documents in advance helps you sign with confidence.

The Closing Disclosure

You will sign the final Closing Disclosure confirming all loan terms and transaction costs. Review this document carefully since it is the same one you reviewed three days before your closing date. Verify that no changes were made since your review. Any last minute changes require a new three day review period. A home inspection should already be completed before you reach this point.

The Promissory Note

The promissory note details the terms of your loan and is your promise to repay the mortgage. It specifies the loan amount, interest rate, monthly payment, and repayment schedule. You will need to sign this document along with your loan application confirmation. It also outlines the consequences of default. This is a legally binding commitment and you should understand every document before you sign.

The Deed of Trust or Mortgage

This document secures the promissory note by placing a lien on the property. If you fail to make payments, the lender has the legal right to foreclose. The deed of trust names a trustee who holds the title until the loan is fully repaid. Different states use either a deed of trust or a mortgage depending on local law.

The Deed

The deed transfers ownership from the seller to you. This document is recorded with your local county recorder's office. Once recorded, you become the legal owner of the property. The title company handles this recording process after closing.

Additional Closing Documents

You will also sign the settlement statement, tax declarations, insurance acknowledgments, and various lender disclosures. The total stack can be 50 to 100 pages depending on your state and loan type. Take your time with each document. Ask the closing agent to explain anything you do not understand.

Closing costs represent the fees and expenses beyond the home's purchase price. They typically range from 2% to 5% of the purchase price. Understanding each cost category helps you budget accurately and negotiate effectively.

Lender Fees

Lender fees include the loan origination fee, which is the lender's charge for processing your mortgage. This typically ranges from 0.5% to 1% of the loan amount. Discount points, if you chose to buy down your interest rate, also appear here. Underwriting fees and processing fees may be listed separately.

Third Party Fees

The home appraisal fee typically costs $300 to $600 depending on the property. Title search and title insurance protect both you and the lender. Attorney fees apply in states that require an attorney at closing. Survey fees verify the property boundaries and may be required by your lender.

Prepaid Items

Prepaid items include property taxes, homeowners insurance, and prepaid mortgage interest. You typically prepay several months of property taxes and insurance into an escrow account. Prepaid interest covers the period between closing and your first mortgage payment.

Who Pays What

Who pays closing costs varies by location and negotiation. Buyers typically pay lender fees, prepaid items, and their share of title insurance. Sellers often pay real estate commissions and transfer taxes. Seller concessions can shift some buyer costs to the seller as part of negotiations.

The closing meeting is the culmination of the entire home buying process. Knowing what happens step by step helps you stay calm and focused during this important event.

Arrival and Introductions

You will meet at the closing agent's office, your attorney's office, or the title company. In some locations, closing takes place at the real estate brokerage. Your real estate agent is typically present to support you. The closing agent or attorney manages the proceedings.

Document Review and Signing

The closing agent presents each document and explains its purpose before you sign. Start with the Closing Disclosure to confirm all financial details. Then proceed to the promissory note and deed of trust. The closing agent answers questions about each document.

Read every document before signing even if it feels tedious. This is a major financial commitment. If something looks wrong or confusing, stop and ask. Your real estate agent can help explain terms in plain language. Never sign a document you do not understand.

Fund Transfer

After all documents are signed, the closing agent coordinates the fund transfer. Your cashier's check or wire transfer goes into escrow. The lender wires the loan funds to the closing agent. The closing agent distributes payments to the seller, real estate agents, and service providers.

Key Exchange

Once the deed is recorded with the county, the transaction is complete. You receive the keys to your new home. In some cases, you may receive keys at the closing table. In others, you pick them up from your agent after recording is confirmed. The timing depends on local customs and the specific closing terms.

While most closings proceed smoothly, issues occasionally arise. Knowing the common problems and their solutions helps you respond calmly if something unexpected happens.

Last Minute Financing Problems

Occasionally, a lender identifies a last minute issue during final verification. A job change, large purchase, or new credit inquiry can trigger problems. This is why maintaining financial stability throughout the home buying process is critical. If financing issues arise, your lender works to resolve them, but closing may be delayed.

Title Issues

The title search may reveal unexpected liens, claims, or boundary disputes. Most title issues can be resolved before closing with additional documentation or by paying off outstanding obligations. In rare cases, closing may need to be postponed until the title is clear.

Walkthrough Discoveries

If your final walkthrough reveals new damage or incomplete repairs, your agent negotiates a resolution. Options include a repair credit at closing, an escrow holdback for future repairs, or delaying closing until issues are resolved. Your agent advocates for your interests in these situations.

Closing Disclosure Discrepancies

If numbers on the Closing Disclosure do not match expectations, address them immediately. Small differences in prorated taxes or insurance are normal. Significant changes to the interest rate, loan amount, or fees require explanation and may trigger a new three day review period.

Congratulations on becoming a homeowner! After the excitement of closing, several important tasks deserve your attention. Taking care of these items promptly protects your investment and helps you settle in smoothly.

Secure Your Home

Change all exterior door locks immediately. You do not know how many copies of keys exist from previous owners. Consider upgrading to smart locks for added security and convenience. Check that all windows lock properly. If the home has a security system, set up new codes and update the monitoring service.

Store Your Closing Documents Safely

Keep all closing documents in a secure location. You will need them for tax purposes, insurance claims, and future reference. The deed, title insurance policy, and mortgage documents are especially important. Consider making digital copies as backup.

Set Up Utilities and Services

Transfer or establish accounts for electricity, gas, water, sewer, trash, internet, and cable. Contact each provider at least a week before your move in date. File a change of address with the postal service, your employer, banks, and other important contacts.

Plan Your Move

Use a comprehensive moving checklist to organize your transition. Book movers well in advance, especially during busy summer months. Create a detailed inventory of your belongings. Pack an essentials box with items you will need immediately at your new home.

Understand Your Mortgage Payments

Your first mortgage payment is typically due 30 to 60 days after closing. Set up automatic payments to avoid missed due dates. Register for your lender's online portal to track your balance, payments, and escrow account. Review your first annual escrow analysis statement when it arrives.

Use this checklist to ensure you are fully prepared for closing day. Complete each item before your scheduled closing meeting for a smooth experience.