Closing day is the culmination of your homebuying journey—the day you sign the documents, transfer the money, and receive the keys to your new home. After months of searching, negotiating, and waiting, this final step transforms you from buyer to homeowner. Knowing what to expect makes the day go smoothly and helps you spot any issues before they become problems.
Before Closing Day
Your lender must provide your Closing Disclosure at least three business days before closing. This document details your final loan terms, monthly payment, and itemized closing costs. Review it carefully and compare it to your Loan Estimate. While some costs can increase (like prepaid items that depend on closing date), others have strict limits. Question anything that seems wrong—it's much easier to fix before closing than after.
Wire your funds to the title company according to their instructions. Closing costs and down payment are typically due as a wire transfer, not a personal check. Wire fraud is unfortunately common—verify wiring instructions by calling the title company at a number you've independently confirmed, not one from an email. Scammers intercept closing communications and provide fraudulent wiring instructions.
Complete your final walkthrough the day before or morning of closing. This isn't another inspection—it's a confirmation that the property is in the condition you agreed to buy it in. Check that negotiated repairs were completed, all agreed-upon items remain, nothing has been damaged during move-out, and utilities are functional. Don't close if there are problems; address them first.
What to Bring to Closing
Government-issued photo ID is required for everyone signing documents—typically a driver's license or passport. The name must match the name on loan documents exactly. If you've recently changed your name, bring documentation of the change.
A certified or cashier's check may be needed for a small portion of closing costs, though most funds come via wire. Confirm exact amounts with your closing agent. The check should be made out to the title company or as they specify.
Proof of homeowner's insurance should already have been provided to your lender, but bring your policy information just in case. Your lender requires coverage effective from closing day.
Bring any documents your lender or title company requested—sometimes last-minute items are needed. Also helpful: your contract and any amendments, so you can reference agreed terms if questions arise.
What Happens at Closing
Closings typically take one to two hours. You'll sit at a table with the closing agent (usually from the title company), and possibly your real estate agent and the seller. Sometimes everyone signs simultaneously; other times buyers and sellers sign separately.
You'll sign a stack of documents—often an inch thick. The closing agent should explain each one, but key documents include:
The Promissory Note is your promise to repay the loan. It specifies the amount borrowed, interest rate, payment schedule, and consequences of default. This document makes you personally liable for the debt.
The Deed of Trust or Mortgage secures the loan against the property. It gives the lender the right to foreclose if you don't pay. This document is recorded with the county, creating a public record of the lien.
The Deed transfers ownership from seller to buyer. The closing agent records this with the county, making you the legal owner. Until recording is complete, you don't technically own the property.
You'll also sign disclosures, affidavits, and various regulatory documents. Initial or sign where indicated, but don't be afraid to read documents or ask questions. This is a significant transaction—understanding what you're signing is reasonable and expected.
After Signing
Once all documents are signed and funds are confirmed, you'll receive the keys—you're officially a homeowner. Recording of the deed happens shortly after (sometimes same day, sometimes next business day), making your ownership a matter of public record.
Some practical matters: change the locks immediately (you don't know who has copies of the old keys). Transfer utilities into your name if you haven't already. Start your address change notifications—post office, employer, banks, subscriptions, voter registration.
Keep your closing documents in a safe place. You'll need them for tax purposes and may reference them for years. The HUD-1 or Closing Disclosure shows what you paid and when, useful for calculating gains when you eventually sell.