Your offer was accepted—congratulations! But between that exciting moment and the day you get the keys, there's a process that can feel like a maze of deadlines, documents, and decisions. The closing process (also called settlement or escrow) typically takes 30 to 45 days and involves coordination between you, the seller, your lender, title company, inspectors, and various other parties.
Understanding what happens during closing—and when—helps you avoid delays and surprises. Most closings go smoothly, but the ones that run into trouble usually do so because someone didn't respond to a request promptly or didn't understand what was expected of them.
The First Week: Getting Everything Started
The clock starts ticking the moment your offer is accepted. Within the first few days, you'll need to submit your earnest money deposit—typically 1% to 3% of the purchase price—which shows the seller you're serious. This money goes into an escrow account and is credited toward your down payment at closing.
If you were pre-approved rather than fully underwritten, you'll submit additional documentation to your lender to convert that pre-approval into an active loan application. Your lender will also order the appraisal to confirm the home's value supports the loan amount you're requesting.
Most importantly, you'll schedule the home inspection. Standard purchase contracts give buyers 7 to 10 days (sometimes longer) to complete inspections and decide whether to proceed, negotiate, or walk away. Don't wait—schedule your inspection for the earliest available date. If issues arise that require specialist inspections (radon, structural, sewer line), you'll need time to fit those in.
The Middle Weeks: Processing and Verification
Once inspections are complete and any negotiations are resolved, the focus shifts to your lender and the title company. This is when most of the behind-the-scenes work happens.
The appraisal is one of the most critical steps. A licensed appraiser visits the property and compares it to recent sales of similar homes to determine its market value. If the appraisal comes in at or above your purchase price, everything proceeds normally. If it comes in low, you face a choice: renegotiate the price with the seller, make up the difference with additional cash, request the lender challenge the appraisal, or walk away using your appraisal contingency.
Meanwhile, the title company conducts a thorough search of public records. They're looking for anything that could cloud ownership—unpaid property taxes, contractor liens, boundary disputes, errors in previous deeds, or claims from unknown heirs. A clean title search means the seller actually owns what they're selling and can legally transfer it to you. Title insurance protects you against any issues that might surface later despite the search.
Your loan file works its way through underwriting. The underwriter verifies everything—your income, employment, assets, debts, and the property itself must all meet the lender's guidelines. If they need additional documentation, respond immediately. Delays in responding are one of the most common causes of delayed closings.
The Final Days: Preparing for Closing
The magic words you're waiting for: "Clear to Close." This means your loan has been fully approved and the lender is ready to fund it. You're in the home stretch.
At least three business days before closing, you'll receive your Closing Disclosure—a detailed document showing your final loan terms, monthly payment, and all closing costs. Compare this carefully to the Loan Estimate you received when you applied. The numbers should be similar, though some fees may have changed slightly. If anything looks wrong or confusing, ask questions now—not at the closing table.
During this time, you'll also need to arrange homeowner's insurance (your lender requires proof before closing) and prepare your closing funds. The Closing Disclosure tells you exactly how much to bring. This must be a cashier's check or wire transfer—personal checks aren't accepted for large closing amounts. Be extremely careful with wire transfer instructions; wire fraud is common and thieves often send fake instructions timed to coincide with closings. Verify any wire instructions by calling your closing agent at a number you know is legitimate.
Closing Day: The Finish Line
Before heading to the closing table, you'll do a final walkthrough of the property—usually scheduled for the morning of closing or the day before. This isn't another inspection; it's a verification that the home is in the agreed-upon condition, any negotiated repairs were completed, the seller's belongings are removed, and nothing has been damaged since your last visit. If something's wrong, address it before you sign.
The closing meeting itself typically takes one to two hours. You'll sit down with a closing agent (or attorney, depending on your state) and work through a stack of documents. The key items you're signing:
The Promissory Note is your promise to repay the loan according to the agreed terms. The Mortgage (or Deed of Trust in some states) gives the lender a security interest in the property—if you don't pay, they can foreclose. The Closing Disclosure confirms you've reviewed and agree to all costs. The Deed transfers ownership from the seller to you—the document that makes you an official homeowner.
Once everything is signed and funds are transferred, you'll receive the keys. In most cases, you can start moving in immediately, though the deed won't be recorded with the county until the next business day.
Avoiding Common Closing Problems
Most closing delays are avoidable. The biggest culprit is incomplete or slow documentation. When your lender asks for something, provide it within 24 hours if possible. A missing bank statement or unexplained deposit can stall your file for days.
Employment and credit changes cause serious problems. Lenders verify your employment and pull your credit again right before closing. If you've changed jobs, opened new credit accounts, made large purchases, or taken on new debt, you could jeopardize your approval. Wait until after closing to buy furniture, appliances, or a new car—even if the salesperson says it won't matter.
A low appraisal can derail a deal, but it's not necessarily fatal. Your agent can help you negotiate with the seller for a price reduction, or you can bring additional cash to make up the difference. Having an appraisal contingency in your contract protects your earnest money if you can't reach an agreement.
Title issues occasionally surface—an old lien that was never released, a boundary dispute, or an error in a previous deed. The title company works to resolve these, but they can take time. Starting the title search early helps identify problems when there's still time to fix them.
Do not make major financial changes between offer acceptance and closing. No new credit cards, no large purchases, no job changes. Lenders verify your finances again before closing, and changes can cause your loan approval to be revoked. Even paying off debt in large lump sums should be discussed with your lender first.
Estimate Your Closing Costs First-Time Buyer Guide
Frequently Asked Questions
You'll need your down payment plus closing costs (2-5% of loan amount). Your Closing Disclosure shows the exact amount due. Bring funds as a cashier's check or wire transfer—personal checks usually aren't accepted.
Sometimes, if both parties agree and all conditions are met. Factors include lender processing time, title search completion, and seller's moving schedule. Cash purchases can close much faster than financed deals.
Minor issues can often be resolved quickly. Major problems might require postponing closing. Your earnest money is protected by contingencies if the deal falls through due to financing, inspection, or appraisal issues.