Real Estate Closing Process: What to Expect When Closing Real Estate
The real estate closing process is the final step that transfers property ownership from seller to buyer. It involves signing loan documents, transferring funds, and recording the deed — all within a single appointment that typically runs 60 to 90 minutes for a standard residential transaction. Knowing what to expect at each stage removes the uncertainty and helps you arrive prepared.
Closing real estate involves multiple parties: the buyer, seller, their respective agents, the title company or closing attorney, and the lender’s representative. Some closings happen with all parties present at the same table. Others split into two separate signings, with seller and buyer closing independently on the same day.
Steps in the Real Estate Closing Process
The real estate closing process begins 3 to 5 business days before your closing date when your lender issues the Closing Disclosure. Review this document line by line. It shows every fee you’ll pay: origination charges, title insurance, recording fees, prepaid interest, and escrow reserves. If any number differs from your Loan Estimate by more than the allowed tolerance, contact your lender immediately — you have the right to delay closing until discrepancies are resolved.
On closing day, closing real estate requires you to bring a government-issued photo ID, your certified or cashier’s check (or wire confirmation if you wired funds), and any outstanding documents your lender requested. You’ll sign roughly 40 to 80 pages of documents depending on your loan type. Your closing agent or attorney will walk through each one, but the key documents to read carefully are the Promissory Note (your legal obligation to repay the loan) and the Deed of Trust or Mortgage.
Common Delays in Closing Real Estate Transactions
Last-minute title issues are among the most common causes of delay. A lien discovered on the morning of closing — an unpaid contractor, a tax assessment from a prior year, or a judgment against a former owner — requires a resolution before funds are disbursed. Depending on the amount and type, some liens are paid from closing proceeds on the spot. Others require a title curative process that can take days to weeks.
Lender delays also occur when the final loan package isn’t ready on time. This happens when a borrower’s file has a last-minute document request, an employment verification comes back with a discrepancy, or the underwriter requires an additional letter of explanation. If you can, schedule your closing for mid-week rather than Friday — a Friday delay pushes closing to the following week because banks don’t wire funds over the weekend.
What Happens After Closing Real Estate
After the real estate closing process completes, the title company or attorney sends the deed and mortgage documents to the county recorder’s office. Recording can happen the same day or the next business day depending on the jurisdiction and whether you’re in a wet-funding or dry-funding state. In a wet-funding state, funds are disbursed on the day of signing. In a dry-funding state, funds don’t disburse until after recording is confirmed.
You receive keys when the seller’s proceeds are confirmed — either at the closing table or once the recorder confirms the deed. In dry-funding states, there can be a 24 to 48-hour gap between signing and getting keys. Your purchase agreement should specify the possession date clearly to avoid any ambiguity about when you can move in.
Keep all closing documents in a secure location. The HUD-1 or ALTA settlement statement, the title insurance policy, the deed, and your Note are documents you may need years later for tax purposes, refinancing, or a future sale.