How do I prepare for closing on a home?

It’s time to prepare for closing.

You’ve found your home and you’re at the final stages of your homebuying journey. By now, you’ve been notified of the loan decision and any conditions that need to be met. During this time, you have some key responsibilities:

1. Provide any additional closing documentation that may be requested. This may include identification such as a driver’s license or passport to verify your identity along with proof of insurance on your home. You may also need a cashier’s check to cover closing costs, your down payment, any prepaid loan interest, and property taxes, although sometimes this is done with a money wire transfer.

2. You’ll receive your Closing Disclosure from your lender at least three business days prior to closing. This disclosure documents the actual terms and fees for your loan. Your loan processor will contact you to review the Closing Disclosure and discuss potential impacts, should any terms or fees change.

You’ll inspect the property during a final walkthrough.

Your purchase agreement typically has a clause allowing you to examine the property prior to loan closing. This is your time to check for any damage and ensure the seller has vacated the property and left any items negotiated in the contract. Walkthroughs are typically done the day of closing or the night before. If any issues are found, your real estate agent can work with you to delay the closing and address them.

Your settlement agent will work with you to manage your closing.

Your settlement agent will complete the transaction through the transfer of the property’s title to the buyer and the transfer of cash to the seller.

You’ll attend the closing.

Closings are typically done in-person, but other arrangements may be made depending on circumstances (if the seller has moved out of state, for instance). Depending on your particular sale and the state where you live, others at the closing may include:

• Your real estate agent
• The closing attorney
• The seller’s real estate agent
• The settlement agent
• Escrow officer
• A representative of your title insurance company

You’ll sign several closing documents to settle your costs.

At closing, you’ll sign the documents below to finalize your loan and purchase. The more familiar you are with these documents, the more comfortable you will be on closing day.

• The mortgage–Secures the note and gives the lender a claim against your home and land if you default on your monthly payments.
• The deed–Passes legal title of the home and land from the seller to you, if applicable.
• Closing Disclosure–Provides the actual terms and costs of the loan.

Meeting your financial obligations

The settlement agent, escrow officer, and attorney typically handle the details of the financial transfer. Most buyers pay with a cashier’s check or a wire transfer.

Final questions

If you haven’t already asked, closing is the time to find out:

• How you’ll pay property taxes and homeowner’s insurance. Sometimes these are included in your monthly mortgage payment, or you may need to pay them on your own.
• How you’ll pay homeowners’ association dues, if applicable.
• Who you can call if you have questions after the closing.

Celebrate the purchase of your new home.

Once you’ve completed the walkthrough, signed the paperwork, and paid the funds required to close, the transaction is complete. As a new homeowner, you can enjoy the benefits of becoming a part of a new community and get to know your new neighborhood.

Move into your new home—and celebrate!

After moving in, don’t forget to change your locks or door codes, update your mailing addresses with businesses, and ensure your mail is forwarded to your new home. 

Congratulations! Buying a home is likely one of the biggest purchases you’ll make. Don’t forget to celebrate when you reach the end of your homebuying journey and become a homeowner.

Real estate closing key terms

The Closing Disclosure provides a summary of the actual loan terms, the loan costs, other settlement costs, and additional closing disclosures.