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What happens at a real estate closing?

| Jun 7, 2021 | Real Estate Transactions

Purchasing a new home is exciting. But there are many formalities and processes that take place before you get the keys, and the final part of this process is your real estate closing appointment.   

In 2020, according to the National Association of REALTORS®, people sold 5.64 million existing homes in the U.S., and all of these sales underwent the closing process. On the day of your closing appointment, you will meet with several legal and real estate professionals to sign your mortgage and other transaction documents before receiving the keys to the property. 

What you sign

You will review and sign three primary documents at your closing appointment. These include a deed of trust for your mortgage, a promissory note and a closing disclosure. Do not sign any of these documents if there are discrepancies or terms you do not recognize. Although resolving any discrepancies can delay closing, it can protect your interests as a buyer. 

What you pay

At your closing appointment, you will pay closing costs on your mortgage, which typically amount to 3 to 5% of your home loan’s amount. At this appointment, you may also pay any other prepayments or down payments to finalize your home purchase. 

Your closing appointment typically occurs four to six weeks after you find a home to purchase and sign the purchase contract, depending on the terms of the sale. Your actual closing appointment make take a few hours, but after you finish, you will officially own the property you purchased.