Closing on a property is one of the most complex and significant moments in a real estate transaction. After months of house hunting, submitting offers, and navigating negotiations, the final step—closing day—can feel both exciting and daunting. While the title company, such as Patten Title, handles the title work, it’s crucial that you are prepared for the closing table. To ensure a smooth and efficient process, here’s what you need to know and bring on closing day, whether you're buying or selling.
What to Expect on Closing Day
Closing typically takes about two hours, during which you’ll review and sign paperwork, confirm transaction details, and finalize the property transfer. Having everything in order ahead of time helps avoid delays. Below is a checklist of what buyers and sellers should bring for a seamless closing process.
For Buyers
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Identification Bring two forms of ID, one of which must be a government-issued photo ID, such as a driver’s license or passport. A second form can be a credit card, insurance card, or another government-issued ID. This applies to anyone listed on the title, including spouses or business partners.
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Cash-to-Close The funds for closing, often referred to as “cash-to-close,” cover items such as attorney fees, title insurance, appraisal costs, and your down payment. These funds must be delivered either by wire transfer or cashier’s check. For wire transfers, tools like ZOCCAM can make the process safe and simple.
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Transaction Details from Another Sale If you're selling another property to fund this purchase, bring the details from that sale, especially if the proceeds will be used for your down payment. Your real estate agent, lender, and escrow agent should be informed to avoid last-minute surprises.
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Closing Disclosure A few days before closing, your lender will send you a closing disclosure outlining the loan's terms, including interest rate, monthly payments, and closing costs. Review this carefully and bring it to closing to verify everything matches. Catching any discrepancies before signing is crucial.
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Your Real Estate Agent or Attorney Make sure your real estate agent is present at closing. They’ll guide you through the process, ensuring all paperwork is correctly signed, the funds are properly distributed, and any last-minute issues are addressed. In some states, an attorney is required, though in Texas, it’s optional. However, bringing an attorney is always a good idea if there are concerns about potential complications.
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Proof of Insurance Lenders require proof of homeowners insurance before they’ll fund your loan. Bring a copy of your policy, especially the declaration page, which outlines the coverage details. Be sure to arrange your insurance well ahead of closing, and you might even get a discount by bundling it with other policies, like auto insurance.
For Sellers
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Identification As with buyers, sellers need to bring two forms of ID. A photo ID, such as a driver’s license or passport, and a second ID like a credit card or insurance card, are required for all individuals listed on the title.
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Keys and Garage Door Openers After closing, you’ll transfer the keys, garage door openers, and any other property-related items like mailbox keys or security remotes to the buyer. If you’ve arranged to rent back the property temporarily, the key handoff can be scheduled for when you move out.
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Repair Receipts If you agreed to make repairs as a condition of sale, bring receipts for any work completed. For example, if you had to fix a roof leak before the sale could close, you’ll need to show proof that the repair has been made.
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Wiring Instructions If the buyer is wiring funds to you, have your wiring instructions ready, especially if the funds are going directly to your mortgage lender. This ensures the money ends up in the right place without delays.
Final Thoughts
Being well-prepared for closing day can make a significant difference in how smoothly the transaction proceeds. With these documents and details in hand, you’ll be ready to finalize your sale or purchase with confidence.
By following this checklist and relying on your real estate agent's expertise, you can help ensure that your closing goes off without a hitch.
