Congratulations, you’re about to close on a house! Closing is the final step in a real estate transaction and is the day you become the legal owner of your new home. This date is set during the negotiation of the contract and is not final until it is formally accepted by both parties. Below gives more information on what happens during the closing process. 

The first step in the closing process is reviewing your contract and preparing for closing contingencies. Closing contingencies are conditions that are listed in the contract that must be met before the home transaction becomes legal. Contingencies that could be listed in the contract are the home inspection, the appraisal, the loan documents, homeowners insurance, and the final walkthrough. A final walkthrough is an event that takes place 24 hours before closing. At the final walkthrough, you and the agent will make sure that the seller’s belongings are completely cleared out. The contract should be brought to this event as you and your real estate agent will want to ensure that the condition of the home matches the original agreed-upon state.

For most transactions, the average process for closing on a home takes 41 days. This timeline allows for any sort of delays or problems to be fixed efficiently as 32% of all transactions encounter some type of delay before closing. During the closing process, delays such as appraisal problems, loan problems, home inspection problems, neighborhood problems, walkthrough problems, and paperwork problems are all issues that could occur before closing takes place. 

At least three business days before closing takes place your lender will send you a closing disclosure. This document lists all of the final terms of your loan such as closing costs and explains who pays and who receives money at closing. Closing costs are fees third parties charge when you finalize buying your home. These costs include items such as the home inspection bill, the premium for homeowners insurance, the appraisal fee, and credit report charges. On average you will pay 3% to 4% of the purchase price of the home in closing fees.

On the day of closing, you will need to bring a photo ID, outstanding documents or paperwork for the title company or mortgage loan officer, and a certified or cashier’s check made payable to the title or closing company for closing costs that aren’t being deducted from the sales price. Once you arrive for closing you will pay any remaining closing costs and the seller will sign documents to transfer property ownership. You will sign documents as well such as a settlement statement, a mortgage note, and a mortgage or deed of trust. The title company will then register the new deed in your name!

The move-in date should already have been determined and detailed in the contract and, depending on what it stipulates, you may be able to move into your new home as soon as the closing appointment ends!