What Happens at the Closing Table in a Real Estate Transaction?

The closing table is the culmination of the homebuying process, where all the pieces of the real estate puzzle come together. It’s the final step before you officially become a homeowner. In this post, we’ll demystify what happens at the closing table and what you can expect during this crucial event.

1. Reviewing Documents

At the closing table, you’ll be presented with a stack of documents to review and sign. These documents include:

• Closing Disclosure: This provides a detailed breakdown of the final terms of your loan, including the loan amount, interest rate, monthly payments, and closing costs.
• Promissory Note: This is your formal promise to repay the loan, outlining the terms and conditions of the mortgage.
• Deed of Trust or Mortgage: This document gives the lender a security interest in the property, which serves as collateral for the loan.
• Title Insurance Policy: If you’ve purchased title insurance, you’ll receive a copy of the policy.
• Loan Estimate: A summary of the key loan terms you received earlier in the process.

2. Signing Documents

Once you’ve reviewed the documents, you’ll sign them. It’s crucial to read through each document carefully and ask questions if you have any concerns or uncertainties. Your real estate agent and the closing agent will be present to assist and answer any questions you may have.

3. Paying Closing Costs

At the closing table, you’ll need to pay your closing costs, which can include fees for the title search, appraisal, attorney services, and other associated costs. You can typically pay these costs with a cashier’s check or wire transfer.

4. Receiving the Keys

After signing all the necessary documents and paying the closing costs, you’ll receive the keys to your new home. This symbolic moment marks the official transfer of ownership, and you can finally move into your new property.

5. Final Walkthrough

Before or after the closing, it’s common to conduct a final walkthrough of the property. This is your opportunity to ensure that the property is in the same condition as when you last saw it and that any agreed-upon repairs or concessions have been completed.

6. Recording the Deed

Following the closing, the title company or closing attorney will ensure that the deed is properly recorded with the appropriate government authority. This recording is essential to legally transfer ownership of the property from the seller to the buyer.

7. Celebrating Your New Home

Once the closing is complete, you can celebrate your new homeownership. You now have the keys, the title, and the full legal rights to your property. It’s time to start settling into your new home and making it your own.

Conclusion

The closing table is the final step in the homebuying process, where the paperwork is signed, the keys are exchanged, and ownership is transferred. While it can be a complex and paperwork-intensive process, it’s also an exciting moment that marks the beginning of your homeownership journey. Be sure to review all documents carefully, ask questions, and work closely with your real estate agent and closing agent to ensure a smooth and successful closing experience.