Closing day is one of the most exciting and nerve-wracking parts of the homebuying journey. It’s the day you officially become a homeowner and receive the keys to your new property. Understanding what to expect can help you feel confident and prepared as you approach this important milestone.
What Happens on Closing Day?
Closing day is when all the final steps of the real estate transaction are completed. You’ll meet with several parties, including your real estate agent, the seller (or their representative), and possibly your attorney, a notary, and the closing agent. Everyone’s goal is to finalize the paperwork, transfer ownership, and ensure all financial obligations are settled.
Here’s what typically takes place:
First, you’ll review and sign a stack of documents. These documents include the loan agreement, deed, and any disclosures or affidavits required by law. Be prepared to sign multiple copies, as these documents are critical to legally transferring ownership.
Next, the funds will be transferred. This includes your down payment, closing costs, and the mortgage loan amount. If you haven’t already wired these funds, you may need to provide a certified or cashier’s check.
Finally, the deed and title are recorded with the local government. Once this step is completed, you officially own the home. At this point, you’ll typically receive the keys and can begin moving into your new space.
How Long Does It Take?
The duration of a closing appointment can vary but typically lasts one to two hours. The timeline depends on how quickly the documents are reviewed and signed. If everyone arrives prepared and there are no unexpected issues, the process should move smoothly.
What Should You Bring to Closing?
Being prepared is key to a successful sale. Bring a government-issued photo ID, as this is required to verify your identity. If you need to provide a cashier’s check or wire transfer for any remaining costs, have those ready as well. It’s also helpful to bring a copy of your closing disclosure to compare with the final documents.
Common Closing Challenges
While most closings go smoothly, it’s wise to be aware of potential hiccups. For instance, a discrepancy in the final documents, a delay in fund transfers, or an issue with the title could temporarily stall the process. Working with experienced professionals and double-checking all details ahead of time can help minimize these risks.
What Happens Next?
Once the paperwork is signed and funds are distributed, you’ll officially own the home. Celebrate this major achievement! However, there are a few post-closing tasks to keep in mind, such as setting up utilities, updating your address, and securing homeowner’s insurance. Make sure to review any warranties or maintenance schedules that come with the property to keep everything in good condition.
Closing day is the culmination of your hard work and planning during the homebuying process. By knowing what to expect and staying organized, you can navigate this final step with confidence. Congratulations on reaching the finish line and stepping into your new home.
FAQs
Do I need to attend closing in person?
In many cases, yes. However, some states allow remote or mail-away closings, especially if you’re unable to attend in person. Speak with your closing agent or attorney to confirm your options.
How much money should I bring to closing?
Your lender will provide a closing disclosure at least three days before closing, outlining the exact amount you’ll need. Make sure to review this document carefully and have the funds ready.
Can closing be delayed?
Yes, delays can happen due to unforeseen issues like missing paperwork, financing complications, or title problems. Staying proactive and organized can help reduce the likelihood of delays.
Who pays the closing costs?
Both the buyer and seller typically share closing costs, but the exact breakdown depends on your purchase agreement. Your real estate agent or closing agent can clarify who is responsible for each expense.
When do I get the keys to my new home?
In most cases, you’ll receive the keys immediately after the closing process is complete. However, if there are special arrangements in the purchase agreement, such as a rent-back period for the seller, this timing may vary.
Carolina HomePro Inspections provides inspections to customers in Charlotte, NC, and in the Rock Hill area of South Carolina. Contact us to schedule an inspection.