“The Real Estate Closing” is the moment of truth when all your hard work ends by signing documents and getting the keys to your new home.

Government regulations increased the number of documents needed to be signed when closing on a real estate deal. The closing is when ownership is officially transferred from the seller to the buyer.  In short, it’s the last step of the home-buying process when the title is transferred to the buyer and the final payment is transferred to the seller. From looking at real estate to arranging to finance to negotiating the final price, you’ll work with a variety of real estate, legal, banking, and administrative professionals.

Understand the Process

It’s important for buyers to understand the closing process. As part of the contract negotiations, buyers and sellers agree on a date to close.   

At the actual closing, all legal documents are signed and all financial transactions are completed to finalize the sale. During the process of buying a home, there are a number of various professionals involved in the sale, including the title company, real estate agents, mortgage representatives, lawyers, home inspectors, insurance agents, and notaries. Some of these professionals will be at the closing. The buyers and sellers are handed a stack of documents to be signed at the closing.  The representative from the title company will provide a brief explanation of each form before you sign or initial on the dotted line.  

The representative from the title company will provide a brief explanation of each form before you sign or initial on the dotted line.  However, If you like to review the fine print before the closing request the title company for an advance copy of paperwork- so you can get questions answered in advance.

It’s best to get organized and come prepared to the closing so there are no last minute delays or problems completing the sale. The mortgage lenders usually require inspection, appraisal, and insurance before signing off on the loan.

Buyers need to understand the different types of homeowners insurance, private mortgage insurance, owner’s title insurance and any other insurance required by the lender such as flood insurance.

A closing checklist helps you gather all the necessary documents you’ll need, as well as make sure you get all the documentation you’ll need at the transaction. Bring the following to the closing:

• Certified or Cashiers Check
• Photo identification

To Do at Closing

• Sign mortgage agreement and assorted paperwork
• Sign buyer’s and seller’s agreement to transfer property ownership
• Pay closing costs and escrow and any miscellaneous fees

Documents to Get at Closing

• Settlement statement
• Final TILA statement (Truth in Lending Act)
• Mortgage Note
• Mortgage Documents
• Certificate of occupancy if buying a newly constructed house
• Paid receipts

After the Closing

Even though you received keys to the house at closing, change the locks before moving in. You don’t know who has copies. 

After the closing, make copies of all documents you receive and put the originals in a safe deposit box or another secure place. Some things still need to be done by the closing company, such as forwarding payment to prior lenders, paying all parties who provided services for the closing, paying out funds to the seller and recording all legal documents. You may want to touch base with the settlement agent shortly after the closing if you have any questions or concerns about any documents or transactions.

You can always touch base with the settlement agent shortly after the closing if you have any questions or concerns about any documents or transactions.

Closings can produce anxiety and questions.  

Reach out to the appropriate vendors and ask questions so you understand all the paperwork and requirements in advance of the actual closing date.