Closing
What Is Closing?
Closing is the final step in the mortgage and home purchase process where ownership officially transfers from seller to buyer.
During closing, loan documents are signed, funds are distributed, and the property deed is recorded.
Once closing is complete, the buyer becomes the legal owner of the property.
Why It Matters in a Mortgage
Closing determines:
- Final loan terms
- Cash required to complete purchase
- Legal transfer of title
Federal regulations enforced by the Consumer Financial Protection Bureau require borrowers to receive a Closing Disclosure at least three business days before closing.
Reviewing documents carefully protects against surprises.
How It Works
Buyer signs:
Promissory note
Mortgage or deed of trust
Closing disclosures
Funds are transferred.
Title is recorded.
Closing vs. Approval
Approval → Loan is cleared to fund
Closing → Loan is funded and ownership transfers
FAQs About Closing
Can closing be delayed?
Yes, if documentation or funding issues arise.
How long does closing take?
Often one to two hours.
Can terms change at closing?
Significant changes require new disclosure.
Related Terms
