The “Closing” is the final step in the process of buying/selling or refinancing a home. It’s when the seller and buyer or borrower sign all documents needed to complete the transaction and monies are collected and disbursed accordingly. The closing can occur once all of the conditions and requirements of the real estate contract, title commitment and lender have been fulfilled.

The closing can take place almost anywhere. In the office of the Realtor, Lender, Mortgage Broker, Attorney or Title Company are just a few examples. The Title Company typically coordinates the signing time and location, however a Realtor or Lender may also do so. The Buyer and Seller or Borrower should always bring proper photo identification to the closing since their signatures will be notarized. Often times the Seller and Buyer or Borrower are out of state.  In this case documents must be sent out via overnight courier or email for signing. This is known as an “Escrow Closing.” In an Escrow Closing documents are signed in advance and the actual “Closing” occurs on the date set forth in the contract.

Documents for closing are often available for review prior the closing. When the closing takes place the Settlement Agent will explain each document thoroughly.  Never sign a document that is not understood. All of the closing costs are outlined in the HUD1 Settlement Statement. The HUD1 Settlement Statement also sets forth the total amount that the Seller will receive as well as the amount of funds the Buyer will need to bring to closing.