What Is Closing?
Closing: The final step of a home purchase, when documents are signed, funds change hands and ownership transfers.
Also called: settlement
Closing, also called settlement, is when the purchase is completed. You sign the loan documents, the seller signs the deed, the lender funds the loan, and the deed is recorded in your name.
What you sign
- Promissory note
- Deed of trust or mortgage
- Closing Disclosure
- Escrow account disclosure, occupancy and other program forms
Who's there
An escrow officer, closing attorney or notary, and sometimes the seller, though buyers and sellers often sign separately. Some states allow fully or partly online closings.
How long it takes
Signing usually takes about an hour. Funding and recording can happen the same day or take a day or two, depending on the state.
What to bring
Photo ID, confirmation that your funds were wired, and anything escrow asked for.