The Closing Process

Some first-time homebuyers–and even those who have bought before–are confused as to what happens at closing.

Closing on a home loan happens when all documents, funds and necessary paperwork are filed and recorded. This may happen a day or two after you actually sign all the paperwork. Here’s how it works:

  1. An escrow company acts as a “middle man” between buyer and seller, and guarantees all documents are correct and filed properly. Once escrow has received all documents from the lender, and has confirmed that the title insurance and homeowners’ insurance are complete, the buyer and seller come in separately to sign the documents.

  2. The paperwork is sent to the lenders for the release of funds.

  3. Once funds are released, the county records that the property is now in another name. The county then sends a recording number to the escrow company, which passes the number on to the buyer. This is the point at which the deal is closed and the property officially belongs to the buyer.