Key takeaways
- Compare the Closing Disclosure with your Loan Estimate as soon as it arrives.
- Confirm wiring instructions by phone using a number you found yourself.
- Do a final walk-through before you sign.
- Bring ID, your funds as instructed and proof of insurance.
- Keep copies of everything you sign.
Closing, sometimes called settlement or consummation, is the meeting where the loan is finalized, the money changes hands and the home becomes yours. It can feel like a blur of signatures, but almost everything that happens is predictable, and the work that matters most happens in the days before.
Three days out: the Closing Disclosure
Your lender must give you the Closing Disclosure at least three business days before closing. It is a five-page form with your final loan terms, projected monthly payments and closing costs. The three-day window exists so you can compare it with the Loan Estimate you received earlier and ask questions before you are at the table. Check the loan amount, interest rate, monthly payment, cash to close and any fees that changed. If something does not match what you were told, call your lender right away.
The money: how to send it safely
The settlement agent will tell you how much to bring and how to send it. Your cash to close nets out your down payment and any deposit you have already made, plus closing costs, minus anything the seller agreed to pay. Wire fraud aimed at homebuyers is a real risk. Before sending money, call the settlement agent at a phone number you looked up yourself, not one from an email, and confirm the instructions.
Tip: Treat any last-minute email that says wiring instructions have changed as a warning sign. Verify by phone before you move a single dollar.
Insurance and escrow
The lender will not fund the loan without proof of homeowners insurance. Shop for a policy as soon as you have an accepted offer. If your loan includes an escrow account, it is set up at closing and you make an initial deposit that the lender later uses to pay property taxes and insurance.
The final walk-through
Shortly before closing, walk through the home again. You are checking that it is in the condition you agreed to, that agreed repairs were made, that included appliances and fixtures are still there and that nothing new has broken. Run the faucets, flip the switches, test the heating and cooling and open the garage door. If something is wrong, raise it before you sign.
Who runs the closing
A settlement agent coordinates the transaction. Depending on where you live, that may be a title company, an escrow company, which is common in many western states, or a closing attorney, which is common in some eastern states. The agent collects the money from the parties, pays it out according to the contract and the loan, and records the documents with the county.
What you will sign
- The Closing Disclosure, confirming the final terms.
- The promissory note, your promise to repay the loan.
- The mortgage or deed of trust, which makes the home collateral and lets the lender foreclose if you do not pay.
- Other documents about your rights and obligations as a homeowner and borrower. Some signatures need a notary.
The seller signs the deed, the legal document that makes you the owner. Read what you sign, or at least have it explained. You are allowed to slow down and ask questions.
What to bring
- Government-issued photo ID for each buyer.
- Confirmation of your wired funds, or a cashier’s check only if the agent asked for one.
- Proof of homeowners insurance.
- Your Loan Estimate and Closing Disclosure for reference.
- A pen and some patience.
If something changes at the last minute
Sometimes a number on the Closing Disclosure differs from what you expected, a repair was not finished or the seller needs a few more days. Do not feel pressured to sign on the spot. Ask the settlement agent and your lender to explain any change in writing. A short delay to fix a real problem is far better than starting homeownership with a cost you did not agree to or a promise that was never kept. Your agent can help negotiate a credit or a holdback if a repair is still outstanding.
Keys, recording and afterward
Once everything is signed and the money is disbursed, you get the keys. The settlement agent sends the deed and mortgage to the county to be recorded. Keep a complete copy of your closing documents somewhere safe; you will need them for taxes, a future refinance or a sale. In the following weeks, watch for letters from your loan servicer about where to send payments, and be wary of mailings that offer to send you a copy of your deed for a fee. Then comes the fun part: Moving Into Your First Home: The First Week and the First Year.