Closing 101

Buying a home is like a tumbling ball of stress, excitement, and expenses. But hold on tight. There's a light at the end of the tunnel: closing day! Besides signing your name and initials about 20 times, closing is a fairly painless process. Here are some closing basics to prepare you for the final stage of becoming a homeowner.

FINAL WALK-THROUGH

About a week before closing, you'll have the final walk-through. The goal is to ensure the property's condition hasn’t changed, that any agreed-upon repairs have been made, and that the terms of your contract will be met. If there are any major problems - like the seller smashed a couch through a wall while moving out - you can ask to delay the closing or request that the seller provides money to cover the necessary repairs.

WHEN

Real estate closings are typically scheduled towards the end of the month. The nearer to the last day of the month you close, the less interest you owe at closing for that month. However, they recommend avoiding the very last day of the month in case there are any issues or delays. 

WHERE

Closings take place at the title company's office. Title companies are the unsung heroes. First and foremost, they make sure the property title is legitimate and issue title insurance that protects you/your lender against any lawsuits or claims. They also hold and distribute your money to make sure it's only used for closing costs. Lastly, they ensure the new title, deeds, and other documents are filed properly. 

WHO

Surprisingly, not all parties are required to be at the closing. It's common - and actually preferred - that the seller signs all the paperwork beforehand. The seller's attorney, your attorney, a title company representative, and of course you, the buyer, need to be present. The optional folks are the seller, seller's real estate agent (if hired), your mortgage lender, and your real estate agent (if hired). Each entourage will vary depending on your situation.

HOW TO PAY

It's time to say goodbye to those hard-earned Benjamins you've been tucking away. You'll receive closing cost estimates from your mortgage lender the closer you get to closing, but you won't get the actual, finalized number until the day before. Depending on the total, you have two payment options:

Under $50,000: Cashier's Check. This one's easy peasy. Head to your bank with the final amount and the title company's info, and a teller can whip up the check. Don't forget to bring it day-of! Depending on which bank, they charge a $8 to $10 fee.

Over $50,000: Wire Transfer. This has to be sent the day before by 4:00 PM. The title company will send encrypted instructions that include the routing numbers. Bring this info with you to the bank and see a banker (tellers don't handle transfers so don't waste your time standing in line). In addition to the title company's wire transfer fee (which is included in the closing costs), the bank will charge you $20 to $35 as well.

WHAT TO BRING

• Driver's License - You'll need a legal form of identification. It's the first thing they'll check and copy when you walk in.

• Payment - Bring your cashier's check or copy of the wire transfer just in case.

• Checkbook - In case there are any additional fees or last-minute adjustments.

WHAT TO WEAR

If you're curious like I was, we were told not as fancy as a job interview but not like you just rolled out of bed. Basically, look presentable. Business casual is always a safe choice.


After about an hour or two, you'll have a set of keys in one hand and an inch-thick envelope of documents in the other, and officially be a homeowner! As first-time homebuyers without a real estate agent's guidance, we had to learn all this on the fly. So we hope this helps you on your homebuying journey! Feel free to comment with any questions or additional closing tips.