What to Expect During the Home Closing Process

Closing on a home is the final step in the buying or selling journey. It’s an exciting moment, but the process can also feel overwhelming if you’re not prepared. Understanding what happens during the home closing process can help ensure a smooth and stress-free experience. Here’s what you need to know.

1. Review and Sign Documents

What Happens:

At the closing table, you’ll sign a variety of legal documents to finalize the transaction.

Key Documents:

• Closing Disclosure: Outlines the loan terms, closing costs, and final numbers.

• Deed of Trust or Mortgage: Secures the lender’s interest in the property.

• Promissory Note: Details your promise to repay the loan.

• Title Transfer Documents: Officially transfers ownership from the seller to the buyer.

Tips:

• Review all documents in advance if possible.

• Ask your agent or attorney to explain anything you don’t understand.

2. Pay Closing Costs

What Happens:

Buyers and sellers will settle any financial obligations related to the transaction.

Common Closing Costs:

• For Buyers: Loan origination fees, title insurance, escrow fees, and property taxes.

• For Sellers: Agent commissions, transfer taxes, and prorated property taxes.

Tips:

• Bring a certified or cashier’s check or arrange a wire transfer for your portion of the costs.

• Verify payment instructions to avoid wire fraud.

3. Complete the Final Walkthrough

What Happens:

Buyers typically conduct a final walkthrough of the property within 24 hours before closing.

Purpose:

• Ensure agreed-upon repairs have been completed.

• Verify the property is in the same condition as when the offer was made.

• Confirm no unexpected changes or damages.

Tips:

• Bring your purchase agreement to check for compliance.

• Address any issues with your agent immediately.

4. Title Search and Insurance

What Happens:

The title company will verify that the property has a clear title, free of liens or legal disputes.

Importance:

• Ensures you receive ownership without any hidden claims.

• Title insurance protects you and the lender from future disputes.

Tips:

• Confirm that the title company provides a detailed report.

• Purchase an owner’s title insurance policy for added protection.

5. Fund Distribution

What Happens:

Funds from the buyer’s lender and other parties are disbursed to settle the transaction.

Key Steps:

• Lenders transfer loan funds to the escrow or title company.

• Sellers receive proceeds from the sale after deductions for costs and mortgage payoffs.

Tips:

• Confirm with your lender that funds will be available on time.

• Double-check all amounts for accuracy.

6. Recording the Deed

What Happens:

The title company records the deed with the local government to officially document the transfer of ownership.

Importance:

• Provides public notice of the change in ownership.

• Protects your legal rights to the property.

Tips:

• Keep a copy of the recorded deed for your records.

• Verify that all details on the deed are accurate.

7. Receive Your Keys

What Happens:

Once the transaction is complete, the buyer receives the keys to their new home.

Tips:

• Coordinate with your agent or the seller for key handoff.

• Confirm access to all entry points, garages, and mailboxes.

Conclusion

The home closing process marks the culmination of your real estate journey. By understanding each step and preparing in advance, you can avoid surprises and ensure a smooth transition into your new home. Ready to close the deal? Visit simplicityres.com for expert guidance and support throughout the process.