You’re so close that you can hear the keys jingling.

After weeks, if not months, of attending open houses, getting approval for a mortgage, negotiating the price, and going back and forth to get your offer accepted, the hard work is finally done. You are ready for closing day.

One question buyers – especially first-time buyers – often ask is: What exactly happens at a real estate closing?

Most people visualize stacks and stacks of paper, but we have come a long way since those days. Now closings can be tech-forward.

Let's walk through the closing process and what you can expect on closing day.

What is a Real Estate Closing?

In real estate, 'closing' is synonymous with 'signing.'

A real estate closing is the final settlement between buyers, sellers, and any third parties for the transfer of a property. This is when documents are signed, deeds are transferred, and all remaining payments are finalized. The whole process is typically managed by an escrow agent. This is a person (sometimes an attorney) who specializes in handling real estate closings and preparing all related documents.

The process can vary slightly from state to state. In some states, the home buyer and seller can close separately at different dates and times. In other states, both parties attend closing at the same time. While the logistics may vary, the steps remain the same.

What Happens at Closing?

In short, here’s what happens at closing:

• The home buyer brings a cashier's check to cover all remaining closing costs and fees
• The property title is signed over from the homeowner to the buyer. This transfers ownership.
• The closing agent (or in some cases an attorney) registers the new deed with the local government. Then, the home buyer is listed as the official owner of the property.
• The real estate agent(s) involved in the transaction receive their commissions.
• The seller receives any proceeds they earned from the sale, once their mortgage balance and closing costs have been paid off.

Real estate transactions involve a lot of paperwork, so you can expect to sign (physically or electronically) plenty of documents. Fortunately, the escrow or closing agent does most of the heavy lifting. They’ll prepare the required documents and have them ready for the buyer’s signature. Don’t be surprised if you sign a dozen times or more before it’s all said and done.

As a home buyer, you’ll likely have to sign the following documents:

• Bill of sale
• Property deed
• Transfer tax declaration
• Mortgage agreement and note
• Closing disclosure

When the buyer finishes signing all the documents and funds have been distributed, the deed of ownership transfers from the homeowner to the buyer. If you’re at a joint closing, the seller will hand over the keys. At this point, congratulations are in order. You’re a homeowner!

You’ve likely waited weeks if not months to move into your dream home. The entire process of closing on a home undoubtedly requires patience, but it’s all worth it in the end when you don’t just hear the keys jingling – but they’re in your hand.

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