At closing, you’ll sign loan documents (promissory note, mortgage), pay closing costs (down payment plus fees), receive the deed to your new home and get your keys. The process takes 1-2 hours. You’ll need government ID, a cashier’s check or wire transfer for funds and any documentation your lender requested. The closing agent walks you through each document before you sign.
Before Closing Day
Final Walkthrough
Do a final walkthrough 24-48 hours before closing:
Verify:
- Agreed repairs are complete
- No new damage occurred
- All included items are present
- Property is in expected condition
- Utilities are working
If issues found:
- Document with photos
- Contact your agent immediately
- May delay closing to resolve
Review Closing Disclosure
You receive the Closing Disclosure (CD) at least 3 business days before closing.
Compare to loan estimate:
- Interest rate
- Monthly payment
- Closing costs
- Cash to close
Watch for:
- Fees that increased beyond tolerance
- New fees not previously disclosed
- Errors in property address or names
- Wrong loan amount or terms
Ask questions before closing. Once you sign, changes are difficult.
Prepare Your Funds
Cash to close includes:
- down payment
- Closing costs
- Prepaid items (taxes, insurance, interest)
- Minus earnest money already paid
- Minus seller credits
Payment method:
- Wire transfer (most common for large amounts)
- Cashier’s check (some closings)
- Personal check (only for small amounts, if allowed)
Wire fraud warning: Verify wiring instructions by phone using a number you find independently—not from email. Scammers intercept emails and provide fake wiring instructions.
Gather Documents
Bring to closing:
- Government-issued photo ID (driver’s license, passport)
- Second form of ID (may be required)
- Proof of homeowners insurance
- Cashier’s check or wire confirmation
- Any documents lender requested
What Happens at the Closing Table
Who Attends
Always present:
- Buyer(s)
- Closing agent (title company, escrow officer or attorney)
Sometimes present:
- Seller(s) (may sign separately)
- Real estate agents
- Lender representative (rare)
- Attorney (required in some states)
The Document Signing
You’ll sign 50-100+ pages of documents. The closing agent explains each before you sign.
Major documents:
| Document | What It Is |
|---|---|
| Promissory note | Your promise to repay the loan |
| Mortgage/Deed of trust | Gives lender security interest in property |
| Closing Disclosure | Final loan terms and costs |
| Deed | Transfers ownership to you |
| Title documents | Insurance and ownership records |
| Affidavits | Statements about occupancy, identity |
| Escrow documents | Tax and insurance account setup |
Key Documents Explained
Promissory Note:
- States loan amount, interest rate, payment
- Your legal obligation to repay
- Specifies consequences of default
Mortgage (or Deed of Trust):
- Pledges property as collateral
- Gives lender right to foreclose if you don’t pay
- Recorded with county
Closing Disclosure:
- Final version of all costs
- Compare to what you reviewed earlier
- Any changes should be explained
Deed:
- Transfers ownership from seller to you
- Lists property description
- Recorded with county after closing
Signing Tips
Take your time: Don’t rush. Ask questions about anything unclear.
Check for accuracy:
- Your name spelled correctly
- Property address correct
- Loan amount and rate correct
- Payment matches expectations
Initial every page: Most documents require initials on each page and signature on the last.
Blue ink often required: Ask the closing agent which pen to use.
Closing Costs You’ll Pay
Cost Breakdown
| Category | Typical Costs |
|---|---|
| Loan origination | 0.5-1% of loan |
| Appraisal | $400-$700 |
| Credit report | $30-$50 |
| Title search | $200-$400 |
| Title insurance | $1,000-$3,000 |
| Attorney/settlement fee | $500-$1,500 |
| Recording fees | $50-$250 |
| Prepaid interest | Varies |
| Property taxes (escrow) | 2-6 months |
| Homeowners insurance | 12-14 months |
Sample Cash to Close
$400,000 home, 10% down, 6.5% rate:
| Item | Amount |
|---|---|
| Down payment | $40,000 |
| Closing costs | $12,000 |
| Prepaids | $4,500 |
| Less: Earnest money | -$8,000 |
| Less: Seller credit | -$5,000 |
| Cash to close | $43,500 |
After Signing
Funding
Wet funding states: Funds disburse at closing. You get keys immediately.
Dry funding states: Documents signed, but funds disburse 1-3 days later. Keys come after funding.
Dry funding states include: Arizona, California, Alaska, Hawaii, Idaho, Nevada, New Mexico, Oregon, Washington.
Recording
The deed and mortgage are recorded with the county recorder’s office, making your ownership official public record.
Timeline: Same day or next business day
Getting Your Keys
Wet funding: Keys at closing table after signing
Dry funding: Keys after lender confirms funding (1-3 days)
Possession agreements: Some sellers negotiate extra time to move out (rent-back arrangement)
What You Receive
At or after closing:
- Keys to property
- Garage door openers
- Copies of all signed documents
- Title insurance policy (mailed later)
- Deed copy (mailed after recording)
Closing Day Timeline
Typical Schedule
Before closing:
- Final walkthrough (24-48 hours before)
- Wire funds (day before or morning of)
- Confirm closing time and location
At closing (1-2 hours):
- Review and sign documents
- Closing agent explains each document
- Pay any remaining funds
- Receive keys (in wet funding states)
After closing:
- Documents recorded with county
- Funds disbursed to seller
- You’re officially a homeowner!
Common Closing Problems
Problem: Wire Didn’t Arrive
Cause: Sent too late, wrong account number, bank delay
Solution: Send 24-48 hours before closing. Confirm receipt with title company. Have backup plan (cashier’s check).
Problem: Name Discrepancy
Cause: Name on ID doesn’t match loan documents exactly
Solution: May need additional documentation or affidavit. Ensure name consistency on all applications.
Problem: Missing Documents
Cause: Lender needs last-minute verification
Solution: Be reachable on closing day. Have digital copies of all documents available.
Problem: Final Walkthrough Issues
Cause: Damage discovered, repairs not done, items missing
Solution: May delay closing, negotiate escrow holdback or credit.
Problem: Funding Delays
Cause: Lender conditions not cleared, wire problems, document issues
Solution: Stay in close contact with lender. Clear all conditions before closing day.
State-by-State Differences
Attorney States
Some states require attorney involvement:
- Connecticut, Delaware, Georgia, Massachusetts, New York, North Carolina, South Carolina and others
What’s different: Attorney reviews documents, may conduct closing, provides legal advice.
Escrow vs Title Company
West Coast (escrow states): Escrow company handles closing. Parties often sign separately.
East Coast (title states): Title company handles closing. Parties typically meet together.
Recording and Funding
Simultaneous: Most states record and fund same day
Dry funding: Some western states have gap between signing and funding
Closing Checklist
One Week Before
- Review Closing Disclosure
- Confirm closing date, time, location
- Arrange for funds (wire or cashier’s check)
- Schedule final walkthrough
- Confirm homeowners insurance is in place
Day Before
- Complete final walkthrough
- Wire funds (or confirm wire was sent)
- Gather required documents and ID
- Confirm what to bring
Closing Day
- Bring ID and required documents
- Arrive on time
- Review documents before signing
- Ask questions about anything unclear
- Get copies of everything signed
- Get keys and garage openers
- Celebrate!
Frequently Asked Questions
How long does closing take?
Typically 1-2 hours for a standard residential purchase. Complex transactions or many documents may take longer. Remote or mobile closings may be faster.
Can I back out at closing?
Technically yes, but you may lose earnest money and face legal consequences. If you have serious concerns, raise them before closing day.
What if I can’t attend closing in person?
Options include:
- Power of attorney (another person signs for you)
- Remote online notarization (where legal)
- Mail-away closing (sign documents by mail)
Arrange alternative well in advance.
Do I need to bring my spouse?
If both names are on the loan, both must sign. If only one name, check with your lender and title company about what’s required.
What happens if the seller doesn’t show?
Sellers sometimes sign documents before the buyer’s closing. If seller fails to close, the deal may fall through. Your agent should verify seller is ready.
When do I start making mortgage payments?
First payment is typically due 30-60 days after closing. Your first payment date is on your loan documents. Interest from closing date to month-end is prepaid at closing.
What if closing is delayed?
Communicate with all parties. rate lock extensions may cost extra. Seller may charge per diem for delays. Adjust moving plans as needed.
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Lisa Rodriguez
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