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Step 6: Closing

This is the moment you've been working toward—closing day! All the applications, documents, and approvals lead to this final step where you sign the papers, wire the funds, and officially become the owner of your property.

What to Expect​

StageDurationWhat Happens
Closing Disclosure Review3 days beforeReview final costs and terms
Final WalkthroughDay before/morning ofInspect property condition
Closing Appointment1-2 hoursSign documents
FundingSame day or nextLender wires funds
RecordingSame day or nextDeed recorded with county
Keys & PossessionUpon recordingYou're officially the owner!

Before Closing Day​

The Closing Disclosure (CD)​

Three business days before closing, you'll receive your Closing Disclosure—a detailed breakdown of your loan and closing costs.

What's In the CD:

SectionWhat It Shows
Page 1Loan terms, projected payments, closing costs
Page 2Itemized loan costs, other costs
Page 3Cash to close calculation
Page 4Loan disclosures and terms
Page 5Loan calculations, contact info

Reviewing Your CD​

Check These Items:

✅ Loan Amount - Matches what you expected ✅ Interest Rate - Matches your locked rate ✅ Monthly Payment - Matches estimates ✅ Closing Costs - Within 10% of Loan Estimate ✅ Cash to Close - Matches your calculations ✅ Seller Credits - Applied correctly ✅ Property Taxes - Prorated correctly ✅ Prepaid Items - Insurance, taxes, interest

Compare to Your Loan Estimate:

ItemTolerance
Origination charges0% variance allowed
Transfer taxes0% variance allowed
Services you couldn't shop0% variance allowed
Services you could shop10% cumulative variance
Other costsNo limit, but should be reasonable

Questions or Concerns? Contact your loan team immediately. Changes may delay closing if significant.

Final Walkthrough​

Purpose: Verify the property's condition before you officially own it.

What to Check:

ItemWhat to Look For
Agreed repairsHave they been completed?
Systems workingHVAC, water, electrical
AppliancesAll present and working
FixturesEverything that should stay is there
Clean conditionSeller moved out completely
No new damageNothing broken since inspection

If Issues Are Found:

  • Document with photos
  • Notify your agent immediately
  • May delay closing until resolved
  • Negotiate credits or repairs

Preparing for Closing​

What to Bring​

Required:

  • ✅ Government-issued photo ID (driver's license or passport)
  • ✅ Second form of ID (if required)
  • ✅ Certified/cashier's check OR wire confirmation
  • ✅ Proof of insurance (if not already provided)

Recommended:

  • ✅ Copy of Closing Disclosure (to compare)
  • ✅ Your own pen (blue or black ink)
  • ✅ List of questions
  • ✅ Calculator (phone works)

Cash to Close​

How to Pay:

MethodNotes
Wire TransferPreferred. Verify instructions carefully!
Cashier's CheckFrom your bank. Make payable to closing company
Personal CheckUsually NOT accepted
CashNOT accepted

⚠️ WIRE FRAUD WARNING:

  • Verify wire instructions by phone
  • Call a number YOU find (not from email)
  • Never trust changed wire instructions via email
  • Wire fraud is common—be vigilant!

What You'll Sign​

Expect to sign 50-100 pages of documents:

Major Documents:

DocumentPurpose
Promissory NoteYour promise to repay the loan
Mortgage/Deed of TrustSecurity agreement on property
Closing DisclosureAcknowledgment of terms
Initial Escrow DisclosureTax and insurance escrow details
Right to Cancel3-day rescission (refinances only)
DeedTransfers property ownership
Title DocumentsVarious title-related disclosures
AffidavitsIdentity, occupancy, etc.

Closing Day​

The Closing Appointment​

Who's There:

  • You (the buyer/borrower)
  • Seller (sometimes separately or via power of attorney)
  • Closing agent/escrow officer/attorney
  • Real estate agents (sometimes)
  • Title company representative

What Happens:

1. Verify Identity Closing agent checks your ID and compares to documents.

2. Review Key Documents The closing agent will explain:

  • Final loan terms
  • What you're signing
  • Key obligations

3. Sign Documents You'll sign (or initial):

  • Each document in the stack
  • Multiple copies of some documents
  • Date where indicated

4. Collect Funds Closing agent verifies:

  • Your wire has arrived
  • Cashier's check clears
  • All funds accounted for

5. Document Distribution Closing agent:

  • Prepares documents for recording
  • Distributes copies to all parties
  • Holds funds until recording complete

How Long Does Closing Take?​

ScenarioTypical Duration
Simple purchase45-60 minutes
Standard purchase60-90 minutes
Complex/commercial90-120 minutes
Multiple borrowersAdd 30 minutes each

Tip: Don't schedule anything immediately after. Closings can run long!

After Signing​

Funding​

What Happens: After documents are signed and complete:

  1. Closing agent submits to lender
  2. Lender reviews and authorizes funding
  3. Lender wires funds to closing company
  4. Closing company distributes funds

Timeline:

  • Same-day funding: Common for purchases
  • Next-day funding: Sometimes for refinances
  • "Wet funding" states: Fund same day
  • "Dry funding" states: Fund after recording

Recording​

What Is Recording? Recording is filing the deed with the county recorder's office, making you the official owner on public record.

When It Happens:

  • Usually same day as closing
  • Next business day in some areas
  • Depends on county recording office hours

Keys and Possession​

When Do You Get Keys?

ScenarioKey Timing
Standard purchaseUpon recording confirmation
Seller rent-backPer agreement
Recording delayAfter recording confirmed

Recording confirmation typically comes via call or email from closing company or your agent.

Post-Closing​

What Happens Next​

Within 1-2 Weeks:

  • Receive copies of recorded documents
  • Receive final closing package
  • Loan servicing begins

Within 30 Days:

  • First mortgage payment due (usually 30-45 days after closing)
  • Transfer utilities to your name
  • Update address with banks, etc.

Within 60-90 Days:

  • Receive lender's title policy
  • Receive final escrow statement
  • Loan may be sold to servicer

Important Documents to Keep​

Save these permanently:

DocumentWhy
Closing DisclosureTax records, sale prep
Promissory Note copyLoan reference
DeedProof of ownership
Title PolicyProtection, future claims
Settlement StatementTax records
Loan payoff statementWhen you sell or refinance

Common Closing Issues​

Issue: Wire Didn't Arrive​

Cause: Bank delays, incorrect info, fraud intercept

Solution:

  • Contact your bank immediately
  • Verify wire instructions were correct
  • May need to delay closing

Prevention: Send wire 1-2 days early

Issue: Documents Have Errors​

Cause: Typos, wrong information

Solution:

  • Identify errors immediately
  • Closing agent corrects and reprints
  • May delay closing if extensive

Prevention: Review CD carefully 3 days before

Issue: Last-Minute Changes​

Cause: Credits, repairs, negotiation changes

Solution:

  • New CD may be required
  • 3-day waiting period restarts
  • Closing date pushed

Prevention: Finalize everything before closing week

Issue: Seller No-Show​

Cause: Cold feet, logistics, emergency

Solution:

  • Reschedule closing
  • Seller can sign separately
  • May need power of attorney

Closing Day Checklist​

Day Before:

  • Review Closing Disclosure
  • Confirm wire sent
  • Schedule final walkthrough
  • Confirm closing time and location
  • Gather required documents/ID

Morning Of:

  • Complete final walkthrough
  • Confirm wire received (call closing company)
  • Bring ID and documents
  • Allow extra travel time

At Closing:

  • Verify all documents correct
  • Sign all documents
  • Receive copies
  • Confirm funding/recording timeline
  • Get keys (or timing for keys)

After Closing:

  • Change locks (security)
  • Transfer utilities
  • Update address everywhere
  • Save documents securely
  • Celebrate! 🎉

Congratulations!​

You did it! You navigated the loan process and are now a property owner.

What's Next?

  • Set up autopay for your mortgage
  • Review your loan servicer portal
  • Keep documents organized
  • Plan for property maintenance
  • Consider refinancing options in the future

Frequently Asked Questions​

Q: Can I back out at closing?​

A: Technically yes, but there are consequences:

  • Lose earnest money
  • Potential legal issues with seller
  • Could affect credit if loan already funded

Q: What if I find problems during walkthrough?​

A: Options include:

  • Delay closing until fixed
  • Negotiate credit/escrow holdback
  • Walk away (with consequences)

Q: When is my first payment due?​

A: Typically 30-45 days after closing. Your first payment is always on the 1st of a month, so timing depends on when you close.

Q: What if I can't make closing?​

A: Options include:

  • Power of attorney (arranged in advance)
  • Remote/mobile notary (some states)
  • Reschedule closing

Q: How long until I own the property?​

A: You own it once the deed is recorded—usually same day as closing, sometimes next business day.

Need Help?​

Questions about closing?

Congratulations on making it to closing! We're here if you need anything.