CLOSING GUIDE
How to use this guide
Closing is where a real estate deal either becomes boring in a good way or stressful for avoidable reasons. Most closing problems are not dramatic. They are procedural. Missing paperwork. Last minute lender requests. A repair that was not documented. A title issue that no one noticed early enough. A seller who forgot to move a piece of personal property that was included. Small things, but small things can delay closings.
My job during closing is to make sure we do two things. First, we eliminate surprises. Second, we keep adhere to timelines. If you do those two things, closings become simple.
This guide walks you through the full closing runway from the moment you are under contract to the moment you get keys, with an emphasis on the places where buyers and sellers most often slip up.
What this Guide Covers
- What is Closing?
- TImeline
- Title and Liens
- Mortgage Underwriting
- Closing Disclosures
- Taxes and Prorations
- Final Walkthrough
- Repairs
- Funds
- Closing Day
- Taking Possession
- Checklists
1.) What Is Closing?
Closing is the legal transfer of ownership from seller to buyer. It involves signed documents, funds transferred, and recording of the deed.
In plain English, closing is when
- The lender is satisfied
- The title company or attorney is satisfied
- The parties sign
- Money moves
- The home officially becomes yours, and keys transfer per the agreement
2.) Timeline
Buyer responsibilities
- Provide lender documents quickly
- Do not change financial profile without lender approval
- Schedule utilities and insurance
- Complete walkthrough
- Bring required funds properly
Seller responsibilities
- Provide access for appraisal and inspections
- Complete agreed repairs
- Maintain home condition through closing
- Coordinate move out and possession timing
- Provide payoff information and required signatures
My role
I track deadlines, pressure test assumptions, and make sure all parties are doing what they need to do before it becomes urgent. This is where my background as an attorney is useful. I treat deadlines like litigation deadlines. If you miss them, your leverage changes.
3.) Title, Liens, and Encumberances
Title is the most underrated part of closing. Title is about whether the seller can legally convey clear ownership and whether there are encumbrances that matter.
Common title issues
• Old mortgages that were paid off but not properly satisfied
• Judgments or liens
• Estate or trust authority issues
• Easements that affect use
• Boundary issues if there are fences or driveway questions
4.) Mortgage Underwriting
From a buyer perspective, the biggest cause of closing delays is lender underwriting.
Underwriting is the lender verifying
- Income
- Assets
- Credit profile
- Employment
- Property value through appraisal
- And any loan program specific requirements
What I tell buyers to avoid during underwriting
- Do not open new credit lines
- Do not buy a car
- Do not move large sums between accounts without documenting
- Do not change jobs unless you have discussed with lender
- Do not make big cash deposits without a paper trail
Financial Tip
Some buyers can do some of these things without consequences, but as a rule, if you want a clean closing, keep your financial life boring until after you close.
5.) Closing Disclosure
Buyers receive a closing disclosure before closing. It shows your loan terms and your final cash to close.
What matters most in the closing disclosure
- Loan amount and interest rate
- Monthly payment components
- Closing costs and lender fees
- Credits and concessions applied correctly
- Prepaid items, like homeowners insurance and interest
- Escrow setup, if applicable
For sellers, the settlement statement shows
- Sale price
- Mortgage payoff
- Seller credits
- Real estate commission
- Transfer taxes or recording fees as applicable
- Net proceeds
6.) Taxes and Prorations
One of the most common buyer questions is why cash to close changes in the last week. That usually comes from prorations and prepaids, not because someone is trying to sneak in extra fees.
Common items that shift cash to close:
- Property tax prorations
- HOA prorations and transfer fees
- Homeowners insurance premiums and escrow funding
- Daily interest from closing date
- Lender required reserves
Market Tip
Property taxes can be a large line item, especially in NJ towns. In PA, township and school district patterns vary. The math is mechanical, but the amount can be surprising if buyers did not model it correctly early.
7.) Final Walkthrough
The final walkthrough is your last chance to confirm the property is in the agreed condition. It is not a second inspection. It is not a time to renegotiate for new ideas. It is a condition verification.
What buyers should check
- The home is vacant or possession is as agreed
- No new damage since inspections
- Agreed repairs are completed and documented
- Appliances and fixtures included in contract are still present
- Heat, water, and electricity are functioning
- Garage and outbuildings are empty unless otherwise agreed
What buyers should not obsess over
- Minor scuffs from moving
- A small nail hole
- Tiny cosmetic issues that do not change the value or function
8.) Repairs, Receipts, & Proof
If repairs were negotiated, the seller should provide proof. Proof does not always mean a perfect invoice. It means something that shows the work was done and by whom.
My preference is always
- Clear communication of what was agreed
- Receipts where possible
- Photos if relevant
- And confirmation that permits were pulled if required for certain work
9.) Funds and Wiring
Rules to stay safe
• Never trust emailed wiring instructions without verifying by phone using a known number
• Call the title company directly, not a number in an email
• Treat any last minute change of instructions as suspicious
• If you can, use secure title portals and confirm in person when possible
10.) Closing Day
In many PA closings, title companies coordinate the process, documents are signed, funds transfer, and recording happens. In NJ, attorney review exists in many transactions and title is central to closing, but the exact rhythm varies by deal.
What happens everywhere:
- You will sign documents
- Funds will be transferred
- The deed will be recorded
- And keys will be released per the contract once the transaction is confirmed complete
11.) Possession
If possession is immediate
- Keys are released after confirmation of funding and recording steps per local practice.
If there is a rentback
- Everything should be documented clearly, including dates, payment, security deposit if any, and responsibilities for damage.
Post closing tasks for buyers
- Change locks
- Set up utilities and trash service
- Review escrow setup and future tax payments
- File homestead or property tax related paperwork if applicable
12.) Checklists
Buyer Closing Checklist
- Two weeks before closing
- Confirm homeowners insurance
- Provide lender any final documents
- Confirm closing date and time
- Confirm cash to close plan and fraud prevention steps
- One week before
- Review initial closing disclosure
- Schedule walkthrough
- Confirm utilities transfer
- Avoid any financial changes
- Day before
- Confirm final cash to close
- Confirm wiring instructions by phone
- Prepare ID and any required documents
- Walkthrough day
- Verify repairs and condition
- Confirm included items
- If issues, address immediately
- Closing day
- Sign documents
- Send funds properly
- Receive confirmation and keys per process
Seller Closing Checklist
- Two weeks before
- Confirm repair completion plan
- Gather payoff information and HOA paperwork if needed
- One week before
- Provide receipts or proof of repairs
- Confirm possession timing
- Prepare home to show well for walkthrough
- Day before
- Home broom clean
- Remove personal property
- Confirm keys, garage openers, codes ready
- Confirm utilities remain on through closing unless otherwise directed
- Closing day
- Sign documents
- Confirm payoff and net proceeds plan
- Transfer keys per agreement
Disclaimer
This guide is for general informational purposes only and is not legal advice or real estate advice for your specific situation. Reading this guide does not create an attorney–client relationship or a real estate agency relationship. Laws, regulations, and market conditions vary by location and change over time, so you should consult qualified professionals for advice tailored to your circumstances.