What to expect when you are Clear-to-Close

Closing, or settlement, is a meeting where final documents are signed, and ownership of the home is transferred from the seller to the buyer. Review your settlement statements closely. If you note any large variations from the estimated costs your lender originally provided, reach out and ask questions. Schedule a walk-through of your new home, making sure it’s in the condition you agreed upon. Don’t feel rushed and ask questions about anything you don’t understand.


A real estate contract may require the buyer to provide an earnest money deposit to show the seller their sincerity in purchasing a property. Generally, the funds are held in an escrow account established by a closing/settlement agent or attorney for the purpose of disbursing funds being held on behalf of others.


In accordance with signed contracts, the buyer or seller involved in the transaction will select the closing/settlement agent to act as a neutral third party to handle funds, documents, and tasks specific to the transaction, as outlined on the real estate purchase agreement or sales contract. The closing/settlement usually takes place at a title company or an attorney’s office. A closing agent and all borrowers and real estate agents are typically present.


The closing agent will outline the money you owe, such as the remainder of a down payment and taxes, as well as any credits from the seller. All costs will be detailed on your settlement statement. You will sign a document indicating that you have accepted the mortgage loan from your lender. You will sign several affidavits and declarations, which are legally binding documents that spell out your financial obligation and right as a homeowner. Your title company will transfer the money to the seller on your behalf. The seller will sign the deed, transferring the ownership of the property to you. The title company will prepare and record all the documents.


Once all the tasks described within the purchase agreement have been completed and the appropriate funds are disbursed, the transaction is complete.

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