Closing on a Home Purchase | This First House

First-time homebuyers sit through the final phase of a real estate transaction: the closing.

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What is a Closing?
A closing is the final phase of a real estate transaction. The buyers will sign several documents at the closing before they hand their check over. When it’s done, they get the keys to the house and are now the new owners.
It’s a Long Meeting
The average closing is about two hours long. For that reason, real estate agents often suggest that their clients eat something before heading into their closing. Otherwise, their clients may feel grumpy and find the process to be unbearable.
There Are a LOT of Papers to Sign
There are a lot of important documents that need to be signed. This includes:
Promissory Note – Your legal promise to repay the mortgage
Mortgage (or Deed of Trust) – Secures the loan against the property
Closing Disclosure (CD) – Final summary of loan terms and costs
Initial Escrow Disclosure – Explains taxes/insurance escrow payments
Loan Application (final version) – Confirms details you originally submitted
Deed – Transfers ownership from the seller to you
Title Affidavit – Confirms seller has clear ownership
Settlement Statement (ALTA Statement) – Line-by-line closing costs breakdown
Proration Agreements – Adjusts taxes, utilities, HOA dues, etc.
Receipt of Funds – Confirms your down payment and closing funds
IRS Form W-9 – Confirms your taxpayer information
IRS Form 1099-S (sometimes) – Reports sale proceeds (seller-focused)
Occupancy Affidavit – States whether the home is your primary residence
Proof of Homeowners Insurance
Flood Hazard Acknowledgment (if applicable)
Survey Acknowledgment (sometimes)
HOA agreements

Even that list is not exhaustive. You’ll spend the majority of the time listening to what each document is and then signing on dotted lines.

When It’s Over, the House is Yours
By the end of the closing, the new buyers receive a copy of the deed and set of keys to the home. It’s their property at that point, and they can choose to renovate the home, move in that night, or take their time transitioning to their new house.

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Closing on a Home Purchase | This First House
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