What to Expect One Week Before Closing?

The final week before closing on a home involves important tasks for both buyers and sellers. Navigating these steps ensures a smooth transition of property ownership. This stage includes confirming the home’s condition, managing financial transfers, and understanding the documents that finalize the transaction.

Final Home Preparations

The final walk-through, typically conducted within a week of the closing date, is an important step. This inspection allows buyers to verify the property remains in expected condition, that all agreed-upon repairs have been completed, and that no new damage has occurred since the initial inspection. Buyers should bring their purchase agreement to confirm all fixtures and included items are present and functioning. Testing appliances, checking plumbing, and verifying electrical outlets are part of this review.

For buyers, confirming active homeowners insurance and that the binder has been sent to the lender is essential. An insurance binder serves as temporary proof of coverage until the formal policy is issued, protecting the lender’s investment. Buyers should also arrange for utility transfers, contacting electricity, water, gas, and internet providers to initiate service in their name effective on the closing day. Sellers should simultaneously schedule disconnection of their services. Notify utility providers at least two to four weeks in advance to ensure a seamless transition.

The Closing Disclosure (CD), which lenders are legally required to provide at least three business days before closing, is a financial document to review. This form details the final loan terms, projected monthly payments, and all closing costs. Buyers should compare the CD against the initial Loan Estimate to identify any discrepancies in loan terms, interest rates, or fees. Any significant changes, such as an increase in the annual percentage rate (APR) beyond a certain threshold or a change in the loan product, may require a new three-business-day review period.

Understanding Closing Funds and Documents

Buyers must prepare the necessary funds for closing, which typically include the down payment, closing costs, and potentially prorated property taxes or prepaid interest. These funds cannot be paid with a personal check; instead, they must be certified funds, such as a cashier’s check or a wire transfer. Wire transfers are often preferred for their speed and reliability, but buyers should always verify wiring instructions directly with the closing agent to prevent fraud. If a cashier’s check is used, obtain it from the bank a few days prior to closing.

The closing meeting involves signing legal documents that formalize the property transfer and loan agreement. The deed legally transfers ownership from seller to buyer. The mortgage, or deed of trust, secures the loan against the property, granting the lender a lien interest. The promissory note is the borrower’s written promise to repay the loan, detailing the interest rate, repayment schedule, and other terms. A Truth in Lending Disclosure provides information about loan costs, and other affidavits or disclosures may also be required.

What Happens at the Closing Meeting

The closing meeting culminates the home purchase process, typically lasting one to two hours. Attendees usually include buyers, sellers (though sellers may sometimes pre-sign documents), real estate agents for both parties, and a closing agent. The closing agent might be a title company representative, escrow officer, or attorney depending on local practices. Lender representatives may also be present or available to address questions.

The meeting begins with a final review of the Closing Disclosure to confirm all financial details are accurate before signing. Buyers then sign the prepared legal documents, including the deed, mortgage, and promissory note. The closing agent explains each document’s purpose and ensures all signatures are notarized. Following document signing, the formal transfer of funds occurs, with the buyer’s down payment and closing costs disbursed, and the seller receiving their proceeds.

Once all documents are signed and funds transferred, keys to the property are typically exchanged, transferring possession. The closing agent then records the deed and mortgage with the appropriate county office to make the ownership transfer public record. This recording process can take anywhere from a few hours to several weeks. Buyers should bring a valid government-issued photo identification and proof of any wired funds or certified checks to the meeting.