What Happens on Closing Day?
Closing day is the final step in the home buying process. It is the day when ownership of the property officially transfers from the seller to you, and when your mortgage loan is funded. For most buyers, closing day is a mix of excitement and paperwork. Knowing what to expect ahead of time can help you feel prepared, confident, and ready to walk out with the keys to your new home.
Who Will Be at the Closing?
The closing typically takes place at a title company or attorney’s office. Depending on your transaction, the people present may include you as the buyer, your real estate agent, the seller and their agent, a closing agent or attorney, and a representative from the title company. Your mortgage lender may or may not be present in person, but will have already reviewed and approved all the documents. In some cases, closings are conducted remotely or via a mobile notary.
What Documents Will You Sign?
Be prepared to sign a significant number of documents. Key items include the promissory note, which is your promise to repay the loan; the deed of trust or mortgage, which gives the lender a security interest in your property; the closing disclosure, which outlines your final loan terms, interest rate, and closing costs; and the title transfer documents. Your closing agent will walk you through each document, but it is a good idea to review your closing disclosure at least three business days before closing so you are not surprised by any figures on the day of.
What Do You Need to Bring?
You will need to bring a valid government-issued photo ID, such as a driver’s license or passport. You will also need to bring certified funds or wire the closing costs ahead of time. Cash is not accepted at closing, so make sure you confirm the exact amount and payment method with your closing agent at least a day or two in advance. Bring any documents your lender or closing agent has specifically requested as well.
How Long Does Closing Take?
Most closings take between one and two hours, though it can vary depending on the complexity of the transaction and how many documents need to be reviewed. If you have read through your closing disclosure in advance and have all your paperwork in order, the process tends to go smoothly. If you are a cash buyer, closings may be shorter since there is no loan documentation involved.
What Happens After You Sign?
Once all documents are signed, your lender will fund the loan by wiring the purchase price to the title company or escrow account. The title company then disburses funds to the seller, pays off any existing liens, and records the deed in your name with the county. Once the deed is recorded, you are officially a homeowner. Your real estate agent will hand over the keys, and the home is yours.
Common Last-Minute Issues to Avoid
To protect your closing, avoid making large purchases, taking out new credit, or changing jobs in the weeks leading up to closing day. Any major financial changes can affect your loan approval at the last minute. Make sure your homeowner’s insurance policy is in place before closing, and keep communication open with your lender and agent so that any loose ends can be addressed quickly.
Ready to Start Your Home Buying Journey on the Space Coast?
At The House Hunters Group, Jesse and Andrea Griffith guide buyers from the very first conversation through to closing day and beyond. If you are ready to take the next step toward homeownership on the Space Coast, give us a call at 321-501-9579 and let us help you get there.