Closing Day Guide: What Happens and What To Expect

So, you’ve made it through the whirlwind of home shopping, offers, inspections, and paperwork. Your mortgage is approved, the seller said yes, and now you’re headed to closing day. The finish line is in sight! But what exactly is closing? Who’s involved, what should you expect, and how can you prepare for this final (and very important) step? 

Let’s break it down. 

What Does “Closing” on a House Mean? 

Closing – also known as settlement – is the final step in the homebuying process. It’s the moment everything becomes official: the ownership of the home transfers from the seller to you, and all funds are finalized. 

Here’s what that includes: 

• Transfer of ownership – The seller signs the deed, making you the legal homeowner. That deed will be officially recorded by the title company. 

• Distribution of funds – Everyone gets paid. The seller receives the sale amount (minus any fees), the real estate agents get their commissions, and you’ll pay your down paymentThe percentage of the loan amount for a high-priced item, such as a home or car, that is paid up-front to the lender when purchasing a home. The remaining balance is financed.down paymentThe percentage of the loan amount for a high-priced item, such as a home or car, that is paid up-front to the lender when purchasing a home. The remaining balance is financed. and closing costsFees and expenses that must be paid to close on your home, like property taxes, homeowners insurance, title search fees, appraisal fees, etc.closing costsFees and expenses that must be paid to close on your home, like property taxes, homeowners insurance, title search fees, appraisal fees, etc.. 

It’s a big day, undoubtedly, but with a little preparation, it doesn’t have to be a traumatic one. 

Who Attends the Closing? 

In most cases, you’ll be joined by: 

• Your closing agent. This person oversees the entire process and ensures everything is signed and filed properly. 

• A representative from your lender. Your mortgage banker may attend to finalize the loan and answer questions. 

• A title company representative. They handle the legal documentation and recording of the deed. 

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What Should You Bring to Closing?  

It wouldn’t be a bad idea to pack a little “closing day survival kit.” Here’s what you’ll need:  

1. Valid ID 

Bring a government-issued photo ID, like a driver’s license or passport. In fact, bring two forms of ID if you can because some title companies require it.  

2. All Your Documents 

Round up any paperwork you’ve received throughout the homebuying journey – loan estimates, proof of homeowners insurance, your contract, the home inspection report, and any other communication you’ve had with your lender or agent. When in doubt, bring it along; Let the pros find what they need.

3. Certified Funds

This is the biggie. You’ll be responsible for paying any remaining closing costs and your down payment, unless those costs were covered in negotiations with the seller. 

You’ll receive a Closing Disclosure at least three business days before your closing date that outlines these exact numbers. 

So how do you pay? Usually, with a certified check or wire transfer – not a personal check. 

Some buyers prefer to use a wire transfer, which electronically moves your funds from your bank to the title company or settlement agent. Just make sure you verify all wire instructions in person or by phone to avoid scams. 

Expert Tip

If you're wiring funds, check with your bank ahead of time. Some banks only process wires during certain business hours.

What Are Closing Costs? 

Let’s hyperfocus on closing costs for a second. These are the fees and expenses required to finalize your mortgage. They can include: 

• Loan origination fees 

• Appraisal fees 

• Title insurance 

• Escrow accountA separate account your lender sets up to ensure payment of certain expenses like taxes and homeowners insurance.Escrow accountA separate account your lender sets up to ensure payment of certain expenses like taxes and homeowners insurance. fees 

• Prepaid property taxes or insurance 

These costs typically range from 2%–5% of your home’s purchase price (generally speaking). Your lender is required to send you a Closing Disclosure, along with documents like a Closing Cost Worksheet, at least three days before closing so you can review and compare it with your original Loan Estimate.

What To Expect at the Closing Table 

Let’s keep it real here. There’s going to be a lot of signing. And reviewing. And more signing. 

Your closing agent will walk you through every document and confirm that all the figures are correct. Don’t hesitate to ask any lingering questions. This is your moment to understand every line item of what you’re signing. And once everything is signed, sealed, and delivered? You’re officially a homeowner. 

A Few Final Tips for Closing Day 

Closing day really does mark the beginning of a new chapter, and while it may feel like one last hurdle, you’re so close to the finish line. By showing up prepared, asking questions, and knowing what to expect, you’ll be ready to close with confidence: 

• Get there early. Give yourself extra time for traffic, parking, or last-minute errands. 

• Clear your schedule as much as you can. Closings can take anywhere from 30 minutes to a couple of hours. 

• Bring those lingering questions. This is a major financial milestone. There are no silly questions when it comes to your mortgage. 

• Soak it all in. You’ve earned your flowers! 

And if you’re working with Atlantic Bay Mortgage Group®, you’ve got a team that’s here to guide you through it all – before, during, and even after you’ve got keys in hand. So, are you ready for your closing day moment?