The Closing Process: From Contract to Keys

Buying or selling a home is one of life's most important financial transactions. While closing day is often viewed as the finish line, much of the work takes place behind the scenes in the weeks leading up to the transfer of ownership.

Understanding the closing process can help reduce stress, eliminate surprises, and ensure a smooth transaction from contract to closing table.

Before Closing Day

Once a purchase agreement has been fully executed, several important steps take place to prepare for closing.

1. Title Search & Examination

The title company conducts a thorough review of public records to verify ownership and identify any issues that could affect the property's title, including:

  • Existing mortgages

  • Liens or judgments

  • Unpaid property taxes

  • Easements or restrictions

  • Ownership discrepancies

This process typically takes 5–10 business days.

2. Title Commitment Issued

After the title search is completed, a Title Commitment is issued. This document outlines any conditions that must be satisfied before title insurance can be provided and ownership can transfer.

Common requirements may include:

  • Paying off existing mortgages

  • Clearing liens or judgments

  • Resolving title defects

  • Confirming legal property descriptions

3. Inspections, Appraisal & Loan Approval

While title work is underway, the buyer and lender complete several important tasks:

  • Home inspections are conducted.

  • The lender orders an appraisal.

  • The mortgage loan proceeds through underwriting.

  • Required documentation is reviewed and approved.

The title company works closely with the lender to coordinate preparation of the closing documents.

4. Review of Closing Documents

For financed purchases, federal regulations require buyers to receive a Closing Disclosure (CD) at least three business days before closing.

This document details:

  • Loan terms

  • Closing costs

  • Cash required at closing

  • Escrow information

  • Monthly payment estimates

Sellers receive a settlement statement outlining their projected proceeds from the sale.

Both parties should carefully review these documents and address any questions before closing day.

5. Wire Closing Funds

Prior to closing, buyers must transfer the required funds for:

  • Down payment

  • Closing costs

  • Prepaid taxes and insurance

Important Security Reminder: Wire fraud is a growing concern in real estate transactions. Always verify wire instructions by calling the title company directly using a trusted phone number before sending funds.

What Happens on Closing Day?

6. Final Walkthrough

Shortly before closing, buyers complete a final walkthrough of the property to verify:

  • The home's condition remains unchanged

  • Agreed-upon repairs have been completed

  • Appliances and fixtures remain as contracted

  • No new damage has occurred

7. Signing Appointment

The buyer, seller, and closing agent meet to sign the necessary documents. In some cases, remote or mail-away closings may be available.

Documents commonly signed include:

  • Deed

  • Mortgage and Note (if financing)

  • Closing Disclosure

  • Settlement Statements

  • Title Affidavits

  • Property-Specific Disclosures

The closing agent reviews each document and answers any questions during the signing process.

8. Funds Are Distributed

Once all documents have been signed and lender funding has been approved, the title company disburses funds to the appropriate parties.

This typically includes:

  • Seller proceeds

  • Mortgage payoffs

  • Real estate commissions

  • Taxes and recording fees

  • Other closing expenses

9. Recording the Deed

The signed deed is submitted to the county clerk for recording.

Recording officially updates the public record and legally transfers ownership from the seller to the buyer.

10. Keys Delivered

After recording has been confirmed, the buyer receives:

  • House keys

  • Garage door openers

  • Gate access devices

  • Mailbox keys

  • HOA access credentials (if applicable)

Congratulations—the property is now officially yours!

What to Bring to Closing

Buyers

✔ Valid government-issued photo ID

✔ Wire confirmation or certified funds (if required)

✔ Any documents requested by the title company or lender

Sellers

✔ Valid government-issued photo ID

✔ House keys

✔ Garage door openers

✔ Gate remotes

✔ HOA access cards or credentials

✔ Alarm system information and codes

How Long Does Closing Take?

Transaction TypeTypical Signing TimeFinanced Purchase45–90 MinutesCash Purchase20–30 MinutesFor Sale By Owner (FSBO) TransactionVaries Depending on Complexity

How Your REALTOR® Helps on Closing Day

At Dawkins Realty, our commitment to our clients doesn't end when the contract is signed.

Your REALTOR® works behind the scenes to ensure a smooth closing experience by:

  • Attending the final walkthrough when needed

  • Reviewing settlement documents for accuracy

  • Helping coordinate communication between all parties

  • Reminding clients about identification and funding requirements

  • Assisting with last-minute questions during closing

  • Providing post-closing guidance on:

    • Homestead Exemption filing

    • Utility transfers

    • Homeowners insurance updates

    • Property tax considerations

From Contract to Closing—We're With You Every Step of the Way

Whether you're buying your first home, upgrading to a larger property, or selling a longtime residence, the closing process doesn't have to be overwhelming. Our experienced professionals guide you through every step, helping ensure a smooth, secure, and successful transaction.

Have questions about buying or selling a home? Contact Dawkins Realty today to learn how we can help make your next move a success.