You’ve found the perfect home, your offer was accepted, and you’re almost ready to move in. But before you get the keys, there’s one last step—the closing process. Here’s what to expect and how to prepare.
1. Opening Escrow
Once a purchase agreement is signed, an escrow account is opened to securely hold funds and documents until closing.
2. Home Inspection & Negotiations
The buyer typically schedules an inspection. If issues are found, both parties may renegotiate the terms before proceeding.
3. Home Appraisal
The lender orders an appraisal to confirm the home’s market value. If the appraisal is lower than the sale price, it may impact the loan approval.
4. Finalizing the Mortgage
Buyers must provide all required documentation—pay stubs, bank statements, tax returns—for final underwriting approval.
5. Title Search and Insurance
A title company ensures there are no liens or ownership disputes. Title insurance protects against future claims on the property.
6. Reviewing the Closing Disclosure
This document outlines all final loan terms and closing costs. Review it carefully at least three business days before closing.
7. The Final Walkthrough
Usually done 24–48 hours before closing, this is your chance to ensure the property is in the agreed-upon condition.
8. Signing the Paperwork
On closing day, you’ll sign a stack of legal documents, pay closing costs, and finalize your mortgage.
9. Getting the Keys
Once the transaction is recorded with the county, you officially become the new homeowner. Congratulations!
Understanding what happens during closing helps reduce stress and ensures a smoother transaction from start to finish.