What Happens at Closing? Your Final Step to Homeownership

Closing — also called settlement — is the final step in buying a home. You sign the mortgage documents, pay closing costs, and receive the keys. Understanding what happens helps the day go smoothly.

Before Closing

• •Review your Closing Disclosure at least 3 business days before closing
• •Compare it to your Loan Estimate for any unexpected changes
• •Do a final walk-through 24 to 48 hours before closing
• •Bring a government-issued ID and a cashier's check or wire for closing costs

What You Sign

• •Promissory note — your promise to repay the loan
• •Mortgage or deed of trust — gives the lender a lien on the property
• •Closing Disclosure — final loan terms and costs
• •Transfer documents — deed and title transfer
• •Affidavits and disclosures — various legal statements

Who Attends

• •You (the buyer)
• •The seller (or their representative)
• •A closing agent (title company, escrow officer, or attorney)
• •Your real estate agent
• •Sometimes the lender's representative

What You Pay

Closing costs typically range from 2% to 5% of the loan amount. This includes lender fees, title insurance, prepaid taxes and insurance, and recording fees. You will know the exact amount from your Closing Disclosure.

After Closing

Once all documents are signed and funds are disbursed, the deed is recorded with the local government. You receive the keys and officially own the home. Your first mortgage payment is typically due the following month.

Key Takeaways

• •Review your Closing Disclosure at least 3 days before closing
• •Bring a valid ID and funds for closing costs
• •You will sign dozens of documents — take your time and ask questions
• •Your first mortgage payment is usually due the month after closing
• •Use our Closing Cost Calculator to estimate your costs