How It Works: The Closing Process
Closing, or settlement, is a meeting where final documents are signed, and ownership of the home is transferred from the seller to you.
Who and Where?
Closings usually take place at a title company with the following people represented:
- Your real estate agent
- A closing agent
- You and any co-borrower(s)
- The seller's real estate agent
What Will Happen?
- The closing agent will outline the money you owe, such as the remainder of a down payment and taxes, as well as any credits from the seller. All costs will be detailed on your settlement statement.
- You will sign a document indicating that you have accepted the mortgage loan from your lender.
- You will sign several affidavits and declarations, which are legally binding documents that spell out your financial obligations and rights as a homeowner.
- Your title company will transfer the money to the seller on your behalf. The seller will sign the deed, transferring ownership of the property to you.
- The title company will prepare and record all the documents.
- Three business days before closing, you’ll receive your Closing Disclosure, laying out the terms of your loan including an itemized list of fees associated with the closing.
- Review your closing disclosure closely. If you note any large variations from the estimated costs your lender originally provided, reach out and ask questions.
- Schedule a walk through of your new home, making sure it's in the condition you and the seller agreed upon.