What To Expect on Closing Day

Woman and agent review closing papers.

It may take time to get there, but closing day is the grand finale of the homebuying process. It’s when you finally seal the deal, and the purchase becomes official. But if you’ve never bought a house before, you might not be sure what to expect or how you should prepare.

Let’s take a look at how closing day works.

What Happens At Closing Day on a House?

At your closing, you’ll sign off on all the paperwork required to fund your loan and pay your closing costs. The title will be transferred to your name, and the home will be officially yours.

Who attends closing day?

Your closing can include some or all of the following individuals:

  • You, the buyer.
  • Your real estate agent.
  • Your attorney.
  • The seller.
  • The seller’s attorney.
  • A title company representative.
  • An escrow company representative.
  • A lender representative.

Where does closing day take place?

Closing day typically takes place at the office of one of the involved parties, such as the title company, the mortgage lender, or an attorney.

What do I need to bring to closing day?

When you show up on closing day, you’ll want to bring the following:

  • The loan estimate.
  • The closing disclosure.
  • Photo identification.
  • A cashier’s check (or other form of acceptable payment) for the down payment and closing costs.
  • Proof of homeowners insurance.

What documents are signed on closing day?

On closing day, you’ll carefully review your closing documents, which can include:

  • Your promissory note, which confirms you’re committed to repaying your loan.
  • The deed of trust or mortgage.
  • The deed to the house.

How much do I have to pay on closing day?

On closing day, you’ll make your down payment and pay your closing costs, as well as prepaid interest, taxes, and insurance. Closing costs typically range from 2% to 5% of the total purchase price. Your closing disclosure will let you know exactly how much you’ll need. You can pay your closing costs with a certified or cashier’s check, or via wire transfer.

How long does closing day take?

Closing day should take only a few hours. You can expedite the process by reviewing and signing documentation in advance, and having payment ready to cover your closing costs and down payment.

FAQ: What Happens At a House Closing?

Here are answers to some frequently asked questions about what to expect on closing day.

Do you get the keys to the house on closing day?

Often, yes. Once you’ve signed all the necessary documents and paid your closing costs, and all the funds have been disbursed from escrow, the title of the home will be transferred to you, and you’ll get the keys. It may take a day or so for all the transfers to go through, at which point you’ll receive the keys.

Do you move on the day you close?

While your closing date is the day you officially become the owner, it’s not necessarily the day you move in. Buyers typically give the seller seven to 10 days to vacate the property. Your occupancy date will be established in advance and included in your offer as well as the purchase agreement.

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