How Mortgage Closing Works
Complete guide to the closing process. Learn what happens at closing, what documents to sign, and get ready to receive your keys.
6-Step Closing Process
Clear to Close Issued
Underwriter confirms all conditions satisfied and loan is approved for closing.
Schedule Final Walkthrough
Inspect property to verify all agreed repairs completed and property in expected condition.
Review Closing Disclosure
You'll receive closing disclosure 3 days before closing. Review all loan terms, monthly payment, and closing costs carefully.
Prepare Closing Documents
Title company prepares all closing documents including promissory note, mortgage, and deed of trust.
Attend Closing Appointment
Sign all required documents at title company or attorney's office. Bring valid ID and cashier's check or be prepared to wire funds.
Receive Keys & Take Possession
After all documents signed and funds transferred, receive keys to your new home. Congratulations!
Documents You'll Sign at Closing
Closing Disclosure
Final summary of loan terms and closing costs. Review carefully!
Promissory Note
Your promise to repay the loan according to the terms specified.
Mortgage/Deed of Trust
Legal document giving lender a lien on the property as security.
Title Documents
Deed transferring property ownership from seller to you.
Title Insurance
Insurance protecting you against title defects and claims.
Homeowner's Insurance
Proof of insurance required by lender.
Cash-Out Disclosure
Confirmation of funds you're receiving (if applicable).
4506-T Form
Authorizes IRS to verify your tax returns.
Understanding Closing Costs
Typical closing cost range as percent of loan amount
Example: On a $300,000 loan, closing costs typically range from $6,000 to $15,000
Lender Costs
- • Loan origination fee
- • Processing fee
- • Underwriting fee
- • Credit report
Third-Party Costs
- • Appraisal fee
- • Title search
- • Title insurance
- • Attorney fees
Government Costs
- • Recording fees
- • Taxes/stamps
- • Transfer taxes
- • Inspections
Pre-Paid Items
- • Property taxes (prorated)
- • Homeowner's insurance
- • Mortgage insurance
- • HOA fees
Pre-Closing Checklist
- Review and understand your Closing Disclosure (received 3 days before closing)
- Schedule your final walkthrough of the property
- Confirm homeowner's insurance policy is in effect
- Arrange down payment and closing costs (wire or cashier's check)
- Bring valid photo ID to closing
- Confirm closing date, time, and location with title company
- Review final loan terms with Jimmy Joseph MBA
- Arrange utility transfers (electric, water, gas, internet)
- Notify post office of address change
Frequently Asked Questions
How long does closing take?
Typically 30-60 minutes, though complex transactions may take longer.
What should I bring to closing?
Valid photo ID and proof of insurance. Have closing funds ready (wire transfer or cashier's check).
Can I negotiate closing costs?
Yes, seller may agree to cover some costs as part of offer negotiation.
What if something seems wrong at closing?
Ask questions and request clarification. Don't sign anything you don't understand.
Can I change anything after Clear to Close?
No, terms are locked. Any changes require underwriter approval and may delay closing.
What happens after I sign?
Funds are wired, documents are recorded, and you receive keys. You're a homeowner!
Closing Day Timeline
Arrive at title company
Verify identity, review Closing Disclosure
Sign loan documents (promissory note, mortgage)
Sign title and property documents
Fund the loan (wire transfer)
Receive keys! 🎉
Let's Get You to the Closing Table
Jimmy Joseph MBA will guide you through every step of closing and ensure a smooth transaction.
Jimmy Joseph MBA
NMLS #1577754
CMG Home Loans
Related Resources
Key Numbers
- Closing Duration: 30-60 min
- Closing Costs: 2-5%
- Disclosure Timing: 3 days prior
- Keys Received: Same day
Ready to Become a Homeowner?
Let's start your mortgage journey and get you to the closing table.