Closing your loan
Homeownership is right around the corner, but first, it's time to lock down all the details and close the deal.
Closing, also called settlement, is a meeting where the final documents are signed, the closing costs are paid, and ownership of the home is officially transferred to you.
The average time to close a home purchase loan is 43 days
Three days before your closing date, you'll receive your Closing Disclosure. This document lays out the final details of the loan and closing costs you have agreed to. Review it carefully. If you note any large variations from the costs your lender provided in your Loan Estimate, reach out for clarification. Remember, your team gets paid to help you every step of the way and these are your finances – don’t be afraid to ask questions!
You should request a formal walk-through of the home 24 hours before closing. Be sure to check that all required repairs have been made, the home is in the agreed-upon condition and that the seller has completely vacated the property.
What to expect
Closing day can be intimidating with a lot of paperwork to sign, and the process can take a few hours. While every closing differs based on unique situations, the following generally holds true for all:
Closings usually take place at a title company with your real estate agent, a closing agent, any co-borrower(s) and the seller's real estate agent.
You'll be asked to review and sign a handful of documents at closing. Be sure to carefully read and fully understand these documents, as they are legally binding and spell out your financial obligations and rights as a homeowner.
You’ll need to bring a state-issued photo ID and all documentation related to your purchase, including proof of homeowners insurance and a copy of the purchase contract.
When everything is signed and completed, you'll receive the keys to your new home!
You’ll also need to bring a cashier’s check or wire transfer to pay for outstanding escrow items or closing costs that aren’t rolled into the loan.
It's important to understand the closing process so you’re prepared when your settlement date arrives. Be sure to take your time and have your trusted team with you to answer any questions that may arise.