The Final Step of Your Home-Buying Journey: Closing Day


Whew. You made it. You chose a wonderful home, worked out a fair deal with the seller and now it’s time for your closing.

What exactly happens at this mysterious-sounding event?

I knew nothing about the process when I bought my first home when I was 27. I remember that I didn’t sleep the night before. I was nervous, anxious and feeling very unsettled because no one had explained to me what was going to happen. I was surprised by two things: how long it took - almost 3 hours - and how many times I had to sign my name!

What else can you expect? Let’s look at those always important Five Ws!

WHO: It may be a crowded room. In addition to you and the seller, there may be attorneys that you or the seller have hired, both real estate agents (yours and the sellers), a closing agent and a representative from the mortgage company.

WHAT: The title of the house is transferred into your name when you give the seller your money.

WHERE: Your closing typically takes place at the title company. Their job is to make sure the title to your piece of real estate is legitimate. They also often maintain the escrow accounts for your home that were established during the buying process.

WHEN: Your closing will be scheduled about 30 to 45 days (on average) from the day you reach an agreement with the seller.

WHY: You’ll need to sign a number of documents, including:

  •  Mortgage note. This is your promise to pay the lender according to the specified terms.
  • Mortgage or deed of trust. This gives the lender the right to foreclose on your home if you dont pay the mortgage.
  • HUD-1 Settlement and Truth in Lending Statements. These show the details and terms of your loan. Look over both carefully to make sure they are identical to what you originally discussed with your lender. You should actually receive this document 24 hours before the closing.

Once all the documents are signed and youve paid all your closing costs and fees, youll get the keys to your new home.

Again, whew! You made it! You can breathe a big sigh of relief.

We hope you’ll be very happy in your new home.

Have more questions? Feel free to contact us!

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About Author

Hanscom Federal Credit Union
Hanscom Federal Credit Union

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