What Happens at the Real Estate Closing Process?

Reader Question: What happens at the closing?

They shut the doors, bolt the windows, and draw the curtains on you. And no matter how much you knock, nobody will let you out. Ever.

Actually, that was just a bad dream I had once. At a real estate closing you will sign a bunch of paperwork (ideally reading some of it as you go), and you will settle up with any payments that need to be made. This usually includes your agent's fee, escrow fees, property taxes, and other adds and ends.

We have a bunch of information on this subject in the Closing section of the website. I recommend reading through all of those articles. There are only a half-dozen or so, and they're all pretty short. This will give you a much better idea of what happens during the closing process.

One of the most important documents to watch out for before your closing is the HUD-1 settlement statement. You should get this a couple of days before your closing date, and it will outline the costs you are expected to pay. According to RESPA laws, you are supposed to get a HUD-1 statement at least one day before you close on the home.

Of course, the best part of all (for the buyer) is when you get the keys to your new place!