What Happens at Closing?

Closing (also called settlement) is the final step in the home buying process. It's when ownership of the property officially transfers from seller to buyer.

Before Closing Day

  • Final Walk-Through: Inspect the property 24-48 hours before closing to ensure it's in the agreed-upon condition
  • Review Closing Disclosure: You'll receive this at least 3 days before closing; compare it to your Loan Estimate
  • Arrange Funds: Get a certified check or arrange wire transfer for closing costs
  • Get Insurance: Provide proof of homeowner's insurance

What to Bring to Closing

  • Photo ID (driver's license or passport)
  • Certified check or wire transfer confirmation
  • Proof of insurance
  • Any outstanding documents requested by lender or attorney

Documents You'll Sign

  • Closing Disclosure: Final loan terms and closing costs
  • Promissory Note: Your promise to repay the loan
  • Deed of Trust/Mortgage: Secures the loan with the property
  • Deed: Transfers property ownership
  • Title Insurance Policy: Protects against title defects

Typical NJ/NY Closing Costs for Buyers

  • Loan origination fees
  • Appraisal fee
  • Credit report fee
  • Title search and insurance
  • Attorney fees
  • Recording fees
  • Prepaid property taxes and insurance
  • First year's homeowner's insurance

After Closing

  • Receive your keys and garage remotes
  • Update your address
  • Set up utilities
  • Keep closing documents in a safe place
  • First mortgage payment typically due in 30-60 days