Wrapping It Up: Final Steps to Homeownership

Sign the papers, settle the costs, and claim your keys!

What Does “Closing” Actually Mean?

Closing is the final step in your home-buying journey. This is when you sign all the necessary paperwork, finalize the deal, and officially receive the keys to your new home.

The process begins once you sign the purchase agreement, which outlines the closing date. From there, it typically takes 30–45 days to finalize everything. During this time, funds are securely held in escrow until the sale is complete.

What Is a Closing Disclosure?

A Closing Disclosure (CD) is a detailed summary of your final loan terms and costs, which your lender is required to provide at least three business days before closing.

Use this time to carefully review the CD and compare it to your original loan estimate. If there are significant discrepancies, notify your lender immediately. In some cases, this could delay the closing process while adjustments are made.

Here’s what to look for:

Fixed Costs: Some items, like the interest rate and lender fees, cannot change.
Limited Changes: Others, such as government recording fees, can only vary slightly.
Variable Costs: Prepaid interest and similar fees may fluctuate since they depend on timing.

Final Walk-Through: What to Expect

Within 24 hours before closing, you’ll have the opportunity to do a final walk-through of the home. This is your chance to ensure the property is in the agreed-upon condition and that all seller-promised repairs have been completed.

Use this checklist:

Test faucets and check for leaks.
Run appliances to confirm functionality.
Check garage door openers.
Flush toilets and inspect plumbing.
Open and close doors and windows.
Test garbage disposals, exhaust fans, and other systems.

If everything looks good, great! If not, your agent will negotiate with the seller to address any last-minute issues, potentially delaying closing in extreme cases.

Who Will Be at the Closing?

The specific attendees depend on your state, but typically, the following people are involved:

You (the buyer) and your agent
The seller and their agent
A title company representative
Your loan officer
Real estate attorneys (if required)

Closings often take place at a title company, attorney’s office, or real estate office. Some states even allow electronic closings. Regardless of the location, be prepared to sign a significant stack of documents, including the deed of trust and promissory note.

What Are the Closing Costs?

Closing costs typically range between 3%–4% of the purchase price for buyers. For example, on a $300,000 home, you could expect to pay $9,000–$12,000. Sellers usually pay a smaller share (around 1%–3%).

Common closing costs include:

Real estate agent commissions
Loan application and origination fees
Appraisal and credit report fees
Title search and insurance fees
Property taxes and recording fees

To avoid surprises, use tools like online closing cost calculators to estimate your expenses in advance.

What Should You Bring to Closing?

Come prepared with these essentials:

A government-issued photo ID
The finalized sales contract
Proof of homeowners insurance (and flood insurance, if applicable)
A cashier’s check or wire transfer receipt for your down payment and closing costs

Depending on your circumstances, your attorney may advise bringing additional documents, such as a divorce decree or power of attorney.

Why Do You Need Title Insurance?

Title insurance protects both you and your lender from disputes or claims against your property’s ownership. For example, unresolved liens, unpaid property taxes, or clerical errors in public records could threaten your ownership rights.

There are two types of title insurance:

Lender’s Policy: Required by lenders to protect their interest.
Owner’s Policy: Optional but recommended for safeguarding your investment.

The good news? Title insurance is a one-time payment made at closing.

What if Issues Arise at the Last Minute?

Before your loan is approved, it goes through underwriting — a process where your financials and the property’s appraisal are thoroughly reviewed. If anything changes, like a dip in your credit score due to a recent purchase, it could delay closing.

To avoid complications, steer clear of large financial changes, such as opening new credit lines or making big purchases, until after the closing.

Is It Time to Celebrate Yet?

Yes! Once you’ve signed the paperwork, paid the necessary fees, and have those keys in hand, the home is officially yours.

Congratulations! You’ve worked hard to navigate the complexities of the home-buying process. Now, it’s time to settle in, meet your neighbors, and make your new house truly feel like home.