2. Closing

The closing officially occurs when all the conditions of the contract have been met, like the mortgage being approved, the title is clean, insurance is in place, etc.

Be sure you have the funds to cover your down payment PLUS the closing costs. Closing costs can run between 2-5% of your loan amount and you should know this amount from the closing disclosure you recently received.

Your lender usually arranges the closing and makes sure that the closing agent has all the necessary documents in place. Most closings take place at the title or escrow company, but can sometimes take place at an attorney’s office. These days we're also seeing more remote closings, which are either done digitally or they come to you (though this is more common with refinances).

At the closing, the lender “funds” the loan with a cashier’s check, draft, or wire to the closing agent who disburses funds in exchange for the title to the property. This is where the transfer of ownership officially occurs and the buyer receives possession of the property.

What to expect

Here’s what happens at closing:

-You’ll pay your closing costs and your deposit (usually done by wire).
-You’ll fill out a LOT of paperwork.
-You’ll receive the deed to the home in your name, as well as the keys, garage door remotes, etc.

What to bring to closing:
  • Photo ID
  • Outstanding documents or paperwork for the title company or mortgage loan officer
  • Certified or cashier's check for closing costs that aren’t being deducted from the sales price. This amount was on the HUD-1 form you recently received.
  • Checkbook

Who attends a closing?

It varies. Usually it’s just you and the closing agent who works for the title company (real estate agents often don’t attend). Other times you might have an attorney, the seller, a lender representative, and more. It depends on the location and the preference of the title company.

What to expect at closing:

Closing checklist:

Closing costs:

Explaining closing documents:

Congratulations on buying a home!

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