Closing day is a monumental moment in any real estate transaction. Whether you’re a homebuyer eagerly awaiting the keys to your new home or a seller ready to move on to your next adventure, understanding what happens on closing day can help ensure a smooth and stress-free experience. Here’s a comprehensive guide on what to expect on this pivotal day.

Whether you’re buying or selling a home, we have some guides for you! Check out our homebuyer guides right here and guide for sellers here.

Home Closing Day For Homebuyers

Review Closing Disclosure

A few days before closing, you should have received a Closing Disclosure form, which outlines the final terms of your loan and exact costs. Review this document carefully and compare it with your Loan Estimate to ensure there are no discrepancies. You will then either wire funds or bring a cashier’s check to closing with the final amount (more on this below). 

Final Walkthrough

Before you head to the closing table, you’ll typically conduct a final walkthrough of the property. This is your opportunity to ensure that the home is in the agreed-upon condition and that any requested repairs have been completed. It’s also the time to verify that no new issues have arisen since your last visit.

Bring Necessary Documentation

On closing day, you’ll need to bring a government-issued photo ID, a cashier’s check for the final amount if you are not wiring funds, and a checkbook in case additional funds are owed or there was a miscalculation. Your real estate agent will provide a complete list of what you need to bring a few days before settlement.

Transfer of Funds

You will need to bring a cashier’s check or arrange a wire transfer for the down payment and closing costs. 

The Actual Settlement – Signing Documents

Be prepared to sign a multitude of documents, including the mortgage agreement and promissory note (if you are getting a loan), as well as various disclosures. The title attorney will review each document and answer any questions.

Receiving the Keys

Once all documents are signed and funds have been transferred, you will receive the keys to your new home. Be sure to change the locks. Congratulations, you are now a homeowner!

Do you have more questions about buying a home? Read these blogs next:

• Top Home Inspection Items
• What to Expect When You Start Looking to Buy a Home
• How to Find a Home with the Best Value

Home Closing Day For Sellers

Review Closing Statement

Similar to the buyer’s Closing Disclosure, you will receive a settlement statement that outlines all the financial details of the transaction a few days before settlement. Review this document to ensure all figures are accurate.

Broom Clean

Before settlement you should be sure to clean your house for the buyer! After moving there is bound to be a lot of dust and debris. Your house must be in “broom clean” condition per the contract, however it is common courtesy to get a professional clean before moving out – make sure everything is out of the fridge and cabinets. 

What to Bring to Closing

Bring your ID and payment instructions for proceeds.  

The Actual Settlement – Signing Documents

You will need to sign the deed to officially transfer ownership to the buyer, along with any other necessary paperwork. 

Pay Off Mortgage and Liens

If you have an outstanding mortgage, the payoff amount will be deducted from the sale proceeds. Any other liens on the property will also need to be settled.

Transfer of Ownership

Once all documents are signed and funds are received, the title company will record the new deed with the county, officially transferring ownership to the buyer.

Hand Over the Keys

You will hand over the keys at settlement. However please leave the garage door openers in the home for the walk through. Also leave any important information about the property, such as appliance manuals and warranty documents in the home. It’s nice to label any extra keys or important documents!

Selling your home can be a stressful experience! Information is power. Read these blogs next to answer all your selling questions:

• How to Prepare Your Home for a Move
• Should You Set a Home Offer Deadline?
• Are Open Houses Necessary for Selling a Home?

Common Home Closing Day Questions

What if there are issues during the final walkthrough?

If the buyer discovers issues during the final walkthrough, these should be addressed immediately. This could involve negotiating repairs or credits before proceeding with the closing.

How long does the closing process take?

The actual signing of documents typically takes about an hour, but the entire process, including review and fund transfers, can take several hours to complete. (This is quicker for an all-cash sale because there is less paperwork involved). 

What should I do if there’s a delay in closing?

Delays can happen due to various reasons, such as issues with the buyer’s financing or title problems. Communication is key. Work closely with your real estate agent, lender, and attorney to resolve any issues promptly.

Closing day is the culmination of weeks, if not months, of hard work and anticipation. By knowing what to expect and coming prepared, you can ensure a smooth and successful closing process. Whether you’re stepping into your new home or moving on to new beginnings, congratulations on reaching this significant milestone! 

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If you’re looking to buy or sell in the DMV, we’d love to help. Contact us today! You can fill out the form below, call us directly at 703-362-3221, or email us at sue@thegoodhartgroup.com or allison@thegoodhartgroup.com.

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