Closing day is the final step in your home-buying journey, marking the moment when ownership officially transfers to you. It’s an exciting but complex process that involves multiple parties, documents, and legalities. Understanding what to expect can help ensure a smooth closing.
What Is the Closing Process?
The closing process involves finalizing all legal and financial aspects of purchasing a home. During this meeting, the buyer, seller, real estate agents, and sometimes attorneys or lenders gather to sign documents and transfer funds. Once complete, the buyer receives the keys, and the home is officially theirs.
How Long Does It Take to Close on a House?
According to Rocketmortgage.com, closing on a house can typically take 30 – 60 days. The average time to close varies based on loan type and the state of the housing market, but the variation is relatively small.
Steps to Prepare for Closing on a House
To prevent delays and streamline the process, follow these essential steps:
- Schedule a Home Inspection – Ensure the property is in good condition before proceeding with the purchase.
- Hire a Real Estate Lawyer – Though not required in Michigan, having legal guidance can be beneficial.
- Buy Homeowners Insurance – Most lenders require proof of insurance before closing.
- Submit Required Documents – Your lender may need pay stubs, tax returns, and other financial documents.
- Negotiate Closing Costs – Some fees may be negotiable, such as lender fees or title insurance.
- Confirm the Closing Date – Stay in touch with your lender and agent to finalize the scheduled closing day.
- Get Cash Ready for Closing – Have the necessary funds for your down payment and closing costs, usually in the form of a cashier’s check or wire transfer.
- Do a Final Walkthrough – Inspect the home one last time to ensure everything is as agreed.
- Sign Closing Documents – Be prepared to sign multiple documents, including loan agreements and the deed transfer.
What to Bring to House Closing
To avoid delays, make sure you bring:
- A government-issued photo ID (driver’s license or passport)
- Proof of homeowners insurance
- A cashier’s check or wire confirmation for closing costs
- Your checkbook (for any last-minute adjustments)
- A copy of the purchase agreement
- Any other documents required by your lender
What Happens at Closing?
During closing, you will:
- Provide identification documents, including a driver’s license or passport.
- Pay closing costs and escrow items such as property taxes, HOA fees (if applicable), and utility bills.
- Sign several documents related to the property sale, including the closing disclosure, the mortgage document securing your new home as collateral on the loan, a promissory note serving as your promise to repay the lender, and the property deed, which transfers legal ownership of the property.
- If there are no contingencies in your purchase agreement allowing the seller to remain in the home, you will receive the keys to your new property once all documents are signed.
What May Cause Closing Delays?
While most closings go smoothly, some common issues that can cause delays include:
- Title Issues – Unresolved liens or disputes over property ownership
- Loan Approval Delays – Last-minute financing issues or missing documents
- Appraisal Discrepancies – If the home appraises for less than expected, renegotiations may be necessary
- Home Inspection Problems – Significant repair issues found too late in the process
- Incomplete Paperwork – Missing signatures or required forms
Closing day is an important milestone in homeownership. By preparing ahead, staying organized, and working with trusted professionals, you can make the process as seamless as possible. Once everything is signed and sealed, you’ll walk away with the keys to your new home and the start of a new chapter in your life!
