The final step of the home purchase process, where legal documents are signed, funds are disbursed, and ownership transfers to the buyer.
Full Definition
At closing (also called settlement), the buyer signs all loan documents and the seller signs the deed transferring ownership. The closing typically occurs at a title company, attorney's office, or escrow company. The buyer reviews and signs the Closing Disclosure (which they should have received at least 3 business days prior), the promissory note, the mortgage (deed of trust), and other loan documents. Funds are wired or paid by certified check — the down payment and closing costs come from the buyer, and the lender funds the loan. After recording with the county, the buyer receives the keys. Closings typically take 30–60 days from purchase contract to completion.
Related Terms
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