Closing day is when ownership of the home officially transfers to you. While it can feel like a whirlwind of signatures, understanding the process in advance makes it much smoother.
Before Closing: What to Do
- Review the Closing Disclosure (CD): You must receive this 3 business days before closing. Compare it line-by-line against your Loan Estimate. Flag any differences immediately.
- Do a final walk-through: 24 hours before closing, confirm the home is in the agreed-upon condition — repairs completed, belongings removed, appliances left if negotiated.
- Wire your funds: Bring certified funds (cashier's check) or wire transfer for your down payment and closing costs. Never wire funds based on email instructions without verifying by phone — wire fraud is a major risk.
- Bring your ID: Government-issued photo ID for all buyers.
Who Will Be at Closing?
- Closing attorney or escrow officer (required in most states)
- Buyer(s) — you must appear or send a representative with power of attorney
- Seller(s) — may sign separately or not be present in some states
- Real estate agents — often present but not required
- Lender representative — sometimes present, sometimes handles via courier
Documents You'll Sign
- Promissory Note: Your personal promise to repay the loan.
- Deed of Trust (or Mortgage): Gives the lender a lien on the property as collateral.
- Closing Disclosure: Itemized accounting of all costs and credits.
- Right of Rescission: Applicable on refinances, allows 3 days to cancel.
- Initial Escrow Statement: Shows how your escrow account will be managed.
- Certificate of Occupancy or Transfer: Varies by state.
After Closing: First Steps
- Change all locks immediately.
- Update your address with USPS, bank, employer, and government agencies.
- Locate and test smoke detectors, carbon monoxide detectors, and fire extinguishers.
- Find and label all circuit breakers, water shut-offs, and gas shut-offs.
- Set up autopay for your mortgage to avoid missed payment fees.
- File for homestead exemption (if applicable in your state) by the deadline — usually within 30–60 days of purchase.