A guide to closing on a home
A calm, plain-English walk through the last weeks before you get the keys.
The order of things
Every purchase is a little different, but most follow the same rhythm. These four stretches are where people most often feel lost, so the guides slow each one down.
1Weeks four to two
The contract sets the timetable. Loan approval, appraisal and insurance all have to land before the closing date, and each one feeds the final cost sheet.
Read Closing Costs
2The day before
One last visit to check that the home is in the condition you agreed: repairs done, appliances working, nothing left behind that should not be.
Read Final Walk-Through
3Closing day
A stack of documents, a pen and plenty of initials. Knowing what each paper is for makes the hour feel much shorter.
Read Closing Day
4After the keys
Once the deed is recorded, the house is yours. Change the locks, file the paperwork somewhere safe and start unpacking.
What happens after signingWhat is in the folder
For most home loans in the United States, the lender must give you a Closing Disclosure at least three business days before closing. It lists the loan terms, the monthly payment, and every closing cost, and it can be compared line by line with the Loan Estimate you were given at the start.
Read it slowly. Ask about any number that has changed and you do not understand.
A title search checks the public record for anything that could cloud ownership, such as old liens or unpaid taxes. Title insurance protects against problems the search missed. A lender's policy usually comes with the loan; an owner's policy, which protects you, is often optional.
The deed is the document that transfers the property. It is recorded with the local government after closing.
Lenders usually want proof of a homeowners insurance policy before they will fund the loan. The first year's premium is often paid at or before closing, and it appears on the cost sheet.
Shop early. Comparing policies can take time, and some homes need extra cover for flood or other local risks.
Keys, garage openers and codes usually change hands once the loan has funded and the paperwork is complete. Depending on the contract, the seller may hand them over at the table or leave them at the property.
Plan to change or rekey the locks soon after you move in. You never know how many copies are out there.
Walk-through in ten ticks
A short version of the room-by-room list. Tap each line as you check it. Nothing is saved; it is just a pocket list for the day.
Read Final Walk-Through
Every door is different. The steps to reach it are surprisingly alike.
Words you will hear at the table
A deposit paid soon after the offer is accepted to show you are serious. It is usually credited towards your costs at closing.
The total you need to bring on closing day: your down payment plus closing costs, minus deposits and credits already paid.
Costs such as property taxes that are split between buyer and seller according to the day ownership changes.
Interest on the new loan from closing day to the end of that month, paid up front because mortgage interest is paid in arrears.
Optional fees paid to the lender to lower the interest rate. One point is usually one per cent of the loan amount.
Your written promise to repay the loan. The mortgage or deed of trust is what secures that promise with the home.
Filing the deed and the mortgage with the local government so the change of ownership is on the public record.
The moment the lender releases the loan money. In many places the keys follow soon after.
Pick the part of the journey you are in and read it at your own pace.