What is a Home Closing?
A closing is the final phase of a real estate transaction. The buyers will sign several documents at the closing before they hand their check over. When it’s done, they get the keys to the house and are now the new owners.
How Long are Closings?
The average closing is about two hours long. For that reason, real estate agents often suggest that their clients eat something before heading into their closing. Otherwise, their clients may feel grumpy and find the process to be unbearable.
Papers to Sign at a Home Closing
There are a lot of important documents that need to be signed. This includes:
- Promissory Note – Your legal promise to repay the mortgage
- Mortgage (or Deed of Trust) – Secures the loan against the property
- Closing Disclosure (CD) – Final summary of loan terms and costs
- Initial Escrow Disclosure – Explains taxes/insurance escrow payments
- Loan Application (final version) – Confirms details you originally submitted
- Deed – Transfers ownership from the seller to you
- Title Affidavit – Confirms seller has clear ownership
- Settlement Statement (ALTA Statement) – Line-by-line closing costs breakdown
- Proration Agreements – Adjusts taxes, utilities, HOA dues, etc.
- Receipt of Funds – Confirms your down payment and closing funds
- IRS Form W-9 – Confirms your taxpayer information
- IRS Form 1099-S (sometimes) – Reports sale proceeds (seller-focused)
- Occupancy Affidavit – States whether the home is your primary residence
- Proof of Homeowners Insurance
- Flood Hazard Acknowledgment (if applicable)
- Survey Acknowledgment (sometimes)
- HOA agreements
Even that list is not exhaustive. You’ll spend the majority of the time listening to what each document is and then signing on dotted lines.
When It’s Over, the House is Yours
By the end of the closing, the new buyers receive a copy of the deed and set of keys to the home. It’s their property at that point, and they can choose to renovate the home, move in that night, or take their time transitioning to their new house.