The Closing Process
A final walkthrough will often be performed the day of or before closing to verify the property is in the same condition it was when the process began.
At the closing, or settlement, table, the buyer (and seller) sign all closing documents, including the Closing Disclosure and the final loan documents. The buyer pays the remaining funds in their downpayment to the closing attorney) via cashier's check. The closing attorney will then record the transaction and deed with the appropriate municipality.
The buyer receives the keys and, unless indicated differently in the contract, officially takes possession of the property once the property is on record.
The closing process itself takes place at one table (either at the office of an attorney or title company), where buyers sign all documents related to their loan and the transaction itself. After all documents are signed and payments exchanged, buyers generally take possession of the keys unless a separate agreement has been reached to allow the seller stay in the property for a period after closing.
A title search is run just prior to closing to determine if there are any liens or assessments on the title. Provided the title is deemed 'clear,' the closing proceeds as planned.
A buyer's attorney begins preparing the paperwork for changing the title / deed and will prepare title insurance, and a final closing date is scheduled on or around the date indicated in the contract.
In preparation for the closing, the buyer will be receive a copy of the final Closing Disclosure from their lender. The Closing Disclosure (CD) is the similar to the Loan Estimate form the buyer signed with the application. The CD will include the exact numbers (vs. the estimates available at the start) and will itemize any items already paid for throughout the transaction up to close (appraisal deposit / deposits with offer and purchase and sale).
The final Closing Disclosure be provided to borrowers a minimum of 3 business days prior to closing. Borrowers should check the Closing Disclosure carefully as soon as they are received in order to avoid the pressure and inevitable errors that occur if they are read for the first time at the closing table. The focus of your examination should be the loan pricing information and other critical features of your loan.
A final cash figure for what a buyer needs to bring to the closing is included on the Closing Disclosure. This is based not only on a mortgage's closing costs but factors like property taxes and utilities paid in to date by the seller.