Closing is an exciting landmark to reach when buying a house. It’s a relief to find your new home after viewing countless other houses, but closing can also be confusing if you’ve never done it before. Here’s what to expect when you close on your real estate.

A Guide to Closing on a New House

What happens on closing day?

Closing is when you become your new home’s legal owner. It typically occurs at the office of the title company that is securing the legal transfer of ownership. You’ll pay any remaining closing costs, and the seller will sign documents to transfer property ownership. You’ll sign a settlement listing home sale costs, along with a mortgage note, and deed of trust securing the mortgage.

How do I prepare?

Create a checklist of to-dos to accomplish before the transaction becomes legally binding. These include a professional home inspection, an appraisal confirming the property’s current market value, verification of homeowners insurance, and a final walkthrough of the home. You’ll need to bring photo ID, any loan-related documentation, and a copy of the contract.

How much does it cost to close on a house?

Costs usually include the home inspection bill, your homeowners insurance premium, appraisal fee, credit report charges, and attorney expenses. On average, expect to pay 3-4% of the purchase price of your home in closing fees. Your lender must send you a Closing Disclosure at least three business days before closing, which lists all final details of your closing costs. Carefully review each cost and verify it matches your original loan estimate.

Who attends the closing?

Have a team on hand to provide support, including an experienced real estate agent. They’re experts in your market and can help network with other valuable team members like escrow officers, mortgage professionals, home inspectors, attorneys, or title insurance agents. The seller and members of their legal and financial team typically also attend the closing.

How long does closing take?

The average process for closing on a property takes 45 days. In many cases, there are delays caused by problems with the appraisal, loan, home inspection, or document conflicts. Working with the right team helps minimize these potential issues and can get you into your new home more quickly. 

Since 1984, JoAnn Meier of  RE/MAX First Choice has been helping residents of Waterloo, IL, with all their real estate needs. Her team is dedicated to finding homes for sale that exceed their clients’ expectations while meeting their budgets. For those selling a house, they work tirelessly to ensure it closes quickly. Visit their website to view current real estate listings, or call them at 618-939-6003 to speak with one of their friendly, knowledgeable realtors today.