You’ve made it through all the difficult steps and are now ready to close escrow. Even though you think you’re done, you aren’t really finished until escrow is closed and the funding occurs (if you are getting financing for your purchase). Watch the video below for a brief description of what happens at closing.
The video just simplified what happens to make it easier to understand and remember. Prior to closing, the seller will have either provided to you or your agent any receipts for repairs that were required to be done, you will have done your final walkthrough inspection, all title work will have been completed, a final payoff amount will have been obtained for the seller’s outstanding loan(s), any HOA dues will have been prorated as well as any taxes, insurance policies will have been secured, and most if not all funds will have been wired in.
The closing agent will review all documentation required for the transfer of property, recording of the transfer and the financial aspects for the closing. Once you understand all the documentation and have your questions answered, you’ll sign all the paperwork required to close the deal. If you are getting financing you’ll also sign the mortgage, which says that the property you are buying is collateral for the money being loaned to you to purchase it and if you default on the loan that the lender has the right to take the property (foreclose) so that they can then sell it to recoup some or all of the money they are owed.
The document that really makes it real for buyers who get financing is the mortgage not which is the document promising you’ll pay back what is being loaned to you and stating the terms of the loan.
The seller will sign a deed which transfers ownership of the home to you and is recorded in the county records. The other document that is recorded in public records is the mortgage.
Finally all funds that are required will need to be verified as being in and available to use – once that has occurred then escrow is closed. Depending on your agreement with the seller, you may get the keys to your home at that time and can begin moving in.