For a home purchase, the closing, or settlement, is where you sign to take ownership of your home. Your settlement agent or attorney coordinates the document signing, as well as the collection and disbursement of funds. At that time, you will review and sign the mortgage loan documents and pay any closing costs and down payments that are due. 

If you are refinancing, similar steps will take place, just without the involvement of a seller and transfer of property ownership.

Closing steps

  • Review and sign settlement papers - Your settlement agent reviews the closing disclosures and other documents with you and answers any questions you may have and asks you to sign various items.
  • Pay closing costs - If everyone agrees that the papers are in order, you or the seller, if there is one, submit a certified or cashiers check to the settlement agent to cover the closing costs and your down payment, if applicable.

    Some settlement agents request that funds be wired to them and received by the closing date. Be sure to ask in advance to verify the method of payment, to allow time for you to arrange a wire transfer if needed.
  • Receive keys - You receive the keys to your new home. Congratulations!

Closing documents

There are various papers you'll review and sign at your closing including these.

  • Closing Disclosure - This includes an itemized listing of the final fees and other costs charged in connection with your loan. These numbers should correspond to the items listed on the Loan Estimate.
  • Note - This is the document you sign to agree to repay your mortgage. The Note provides you with the details of your loan, including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.
  • Deed of Trust - This secures the Note and gives the lender a legal claim against your property if you default on the Note’s terms. The Deed of Trust restates the basic information contained in the Note, as well as details your responsibilities as a borrower.

After the closing

After the meeting, your settlement agent will officially record the mortgage and deed at the local government clerk’s office. This is the legal transfer of the property and it may take a few days after closing to be completed.

After the transaction has been recorded, the settlement agent will wire the funds to those owed money from the sale. It is at the point of the deed being recorded that you become the official owner of the home.

If you have any questions or if we can help you in any way, please contact us at (804) 323-6800 or (800) 285-6609.