What to Expect at Your Real Estate Closing: Complete Guide

What Happens Before Closing Day

Before you arrive at the closing table, several important steps occur behind the scenes:

3–7 Days Before Closing: Final Walkthrough

You'll conduct a final walkthrough of the property to verify:

• The home is in the agreed-upon condition
• Seller-promised repairs were completed
• All included fixtures and appliances remain
• No new damage has occurred
• The property is clean and vacant (unless otherwise agreed)

If you discover issues during the walkthrough, notify your agent immediately—problems are easier to resolve before closing than after.

3 Days Before Closing: Closing Disclosure

Federal law requires your lender to provide the Closing Disclosure (CD) at least 3 business days before closing. This document includes:

• Final loan terms and interest rate
• Monthly mortgage payment breakdown
• All closing costs itemized
• Cash needed to close

Review the Closing Disclosure carefully. Compare it to your Loan Estimate from when you applied. Significant changes may indicate errors that need correction before closing.

1–2 Days Before Closing: Wire Transfer

If you're wiring your closing funds (recommended for large amounts), initiate the wire 1–2 days before closing to ensure funds arrive on time.

What to Bring to Closing: Complete Checklist

Arriving prepared prevents delays. Here's your closing day checklist:

Required Items

• Valid government-issued photo ID — Driver's license, passport, or state ID. The name must match your loan documents exactly.
• Cashier's check or wire confirmation — For closing costs and down payment balance. Personal checks are typically not accepted for amounts over a few hundred dollars. Make the check payable to the title company (confirm the exact name).
• Proof of homeowners insurance — Your insurance binder or declarations page showing coverage effective on or before closing. The lender requires this.
• Any documents requested by the title company — Power of attorney, trust documents, or other items specifically requested.

Good to Have

• Checkbook — For small adjustments or last-minute costs under $500
• Second form of ID — In case of issues with your primary ID
• Copy of the purchase contract — For reference
• Your own pen — Optional, but some people prefer signing important documents with their own pen

What NOT to Bring

• Large amounts of cash
• Personal checks for major amounts
• Furniture or moving supplies (you don't own it yet)

What Happens at Closing: Step by Step

Step 1: Arrive and Verify Identities (5 minutes)

You'll meet at the title company's office. The closing agent (also called escrow officer or settlement agent) will:

• Verify everyone's identity with government-issued ID
• Confirm all parties are present (buyers, sellers, agents)
• Explain the general closing process

In Utah, buyers and sellers often close at the same time, though separate closings can be arranged.

Step 2: Review and Sign Loan Documents (20–30 minutes)

For buyers with financing, this is the longest part. You'll sign:

• Promissory Note — Your promise to repay the loan (includes loan amount, interest rate, monthly payment, loan term)
• Deed of Trust (Mortgage) — Gives the lender a security interest in your home. If you don't pay, they can foreclose.
• Closing Disclosure — Final accounting of all costs. You received this 3 days ago—verify nothing changed.
• Initial Escrow Disclosure — Explains your escrow account for taxes and insurance.
• Other Loan Documents — Truth in Lending disclosure, right to cancel notice (for refinances), and various compliance documents.

Step 3: Review and Sign Title Documents (10–15 minutes)

Both buyers and sellers sign title-related documents:

• Settlement Statement — Complete accounting of all money in the transaction—who paid what, who receives what.
• Deed — The seller signs the deed transferring ownership to you. In Utah, this is typically a Warranty Deed or Special Warranty Deed.
• Affidavit of Title — Seller swears they're the rightful owner and haven't created undisclosed liens.
• Bill of Sale — Transfers any personal property included in the sale (appliances, etc.).
• Title Insurance Documents — Paperwork for your owner's and lender's title policies.

Step 4: Collect Funds (5–10 minutes)

The closing agent collects:

• Your cashier's check or confirms your wire transfer
• The buyer's lender funds (wired directly)
• Any seller contributions

All funds are verified before proceeding.

Step 5: Final Review and Recording (5 minutes)

The closing agent reviews all documents for completeness, confirms all signatures are present, and explains next steps for recording.

Recording: After closing, the title company sends the deed to the county recorder's office. This public recording officially transfers ownership. Recording typically happens the same day or next business day.

Step 6: Receive Keys and Celebrate (5 minutes)

Once all documents are signed and funds are verified:

• You receive the keys, garage remotes, and any access codes
• The seller vacates (if they haven't already)
• You officially own your new home

Possession timing: In most transactions, you receive keys at closing. Some contracts specify a different possession date—confirm with your agent before closing day.

How Long Does Closing Take?

The closing appointment itself: 30–60 minutes for a typical residential purchase. Cash purchases are faster (15–30 minutes) since there are no loan documents.

Factors that extend closing time:

• Complex transactions (multiple properties, complicated financing)
• Document errors requiring correction
• Last-minute questions or negotiations
• Missing participants

The overall closing process: From accepted offer to closing day is typically 7–60 days. Cash transactions close in less than 72 hours. This includes:

• Loan processing: 2–4 weeks
• Appraisal: 1–2 weeks
• Title search and clearing: 1–2 weeks
• Final underwriting: 3–5 days

Common Closing Day Issues (and How to Avoid Them)

Issue 1: Wire Transfer Delays

Problem: Your wire didn't arrive on time, delaying closing.

Prevention: Initiate wires 2 business days before closing. Confirm receipt with the title company the day before.

Issue 2: ID Doesn't Match Documents

Problem: The name on your ID doesn't exactly match your loan documents (e.g., "Bob" vs. "Robert").

Prevention: Verify your legal name matches on all documents before closing day. Bring additional ID if there's any variation.

Issue 3: Missing Insurance Proof

Problem: You can't prove you have homeowners insurance, and the lender won't fund.

Prevention: Purchase insurance at least 1 week before closing. Bring the declarations page or binder to closing.

Issue 4: Last-Minute Loan Changes

Problem: Your lender discovers an issue and changes terms, triggering a new 3-day waiting period.

Prevention: Don't change jobs, make large purchases, or open new credit accounts during the loan process. Keep your financial situation exactly as it was when you applied.

Issue 5: Walkthrough Reveals Problems

Problem: The final walkthrough shows damage or missing items, and you don't want to close.

Prevention: Do the walkthrough 24–48 hours before closing—not the morning of. This gives time to resolve issues.

After Closing: What Happens Next

Immediately After Closing

• You're a homeowner. Congratulations.
• Change the locks. You don't know who has copies of the old keys.
• Set up utilities. Transfer electric, gas, water, and internet to your name.
• File your documents. Keep closing documents in a safe place—you'll need them for taxes.

Within the Next Few Weeks

• Receive recorded deed. The title company sends you the recorded deed after the county processes it (usually 2–4 weeks).
• Receive title policy. Your owner's title insurance policy arrives by mail.
• First mortgage payment. Typically due 30–60 days after closing.
• Escrow account setup. Your lender establishes the escrow account for taxes and insurance.

Closing Day Tips

• Tip 1: Don't rush — Block off the entire morning or afternoon. Even if closing only takes an hour, you don't want to feel pressured.
• Tip 2: Read before you sign — You don't need to read every word, but understand what each document does. Ask questions.
• Tip 3: Bring snacks and water — Closing can take longer than expected. Stay comfortable and alert.
• Tip 4: Celebrate appropriately — Take photos, pop champagne (after signing), and enjoy the moment. This is a big deal.
• Tip 5: Keep the closing agent's contact info — Questions may arise after closing. The title company remains a resource for recording issues, document copies, and title insurance questions.