Closing Process Explained
Navigate the mortgage closing process with confidence from start to finish
Typical Closing Timeline
Week 1
- Submit application
- Provide initial docs
- Order appraisal
Week 2
- Employment verification
- Income verification
- Credit review
Week 3
- Appraisal completed
- Additional documentation
- Processing continues
Week 4
- File sent to underwriting
- Initial underwriting review
- Conditions issued
Week 5
- Clear conditions
- Final approval
- Schedule closing
Week 6
- Closing disclosure issued
- Final walk-through
- Closing day
Closing Process Phases
Loan Application
Submit your mortgage application and initial documentation
Duration: 1-3 daysComplete loan application
Day 1Provide personal, employment, and financial information
Required Documents:
- Driver's license
- Social Security card
- Recent pay stubs
Submit initial documentation
Days 1-3Provide required financial documents to your lender
Required Documents:
- W-2s (2 years)
- Tax returns (2 years)
- Bank statements (2 months)
- Investment account statements
Receive loan estimate
Within 3 business daysReview estimated costs and loan terms
Required Documents:
- Loan Estimate (LE) from lender
Understanding Closing Costs
Closing costs typically range from 2-5% of the loan amount. Here's what to expect:
Loan Costs
Origination Fee
$1,000 - $3,000Lender's fee for processing the loan
Discount Points
0.5% - 2% of loanOptional fee to reduce interest rate
Appraisal Fee
$400 - $800Property valuation cost
Credit Report Fee
$25 - $50Cost to pull credit report
Third-Party Services
Title Insurance
$500 - $2,000Protects against title defects
Home Inspection
$300 - $600Property condition assessment
Survey Fee
$200 - $500Property boundary verification
Attorney Fees
$500 - $1,500Legal representation (if required)
Government Fees
Recording Fees
$100 - $300Government fees to record deed
Transfer Tax
0.1% - 2% of priceTax on property transfer
Property Tax
Varies by areaProrated property taxes
Prepaid Items
Homeowner's Insurance
$800 - $2,000First year's premium
Property Tax Escrow
2-6 monthsTax reserve for lender
Interest
VariesPrepaid interest to end of month
Closing Day Checklist
Documents to Bring
- Government-issued photo ID
- Certified funds for closing costs (cashier's check or wire)
- Homeowner's insurance policy and proof of payment
- Any required additional documentation
- Copy of closing disclosure for reference
Documents You'll Sign
- Promissory note (your promise to repay the loan)
- Deed of trust or mortgage (secures the loan with the property)
- Closing disclosure (final costs and terms)
- Various disclosures and notices
- Title and deed documents
What You'll Receive
- Keys to your new home
- Garage door openers and codes
- Copies of all signed documents
- Title insurance policy
- Warranty information for appliances
Tips for a Smooth Closing
Do's
- Respond quickly to lender requests
- Keep all financial documents organized
- Stay in touch with your loan officer
- Get pre-approved for exact amount needed
- Review all documents carefully before signing
- Bring certified funds for closing costs
- Do a final walk-through
Don'ts
- Don't make large purchases or open new credit
- Don't change jobs during the process
- Don't make large deposits without documentation
- Don't skip the home inspection
- Don't wait until the last minute to get insurance
- Don't wire funds without verifying instructions
- Don't assume anything - ask questions
🏛️ Official Closing Resources
Official guide to mortgage closing
Department of Housing closing guidance
How to read your closing disclosure
Tips for a successful closing
Ready to Navigate Your Closing?
Connect with an experienced loan officer who can guide you through every step of the closing process.