Real estate closing checklist

General guidance only. Closing requirements vary by state, lender, and transaction type. This checklist covers standard residential purchase closings. Your title company, lender, and real estate attorney confirm exact requirements for your transaction. See our full disclaimer.

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A real estate attorney reviews your purchase contract, title commitment, and closing disclosure before you sign. Many states require attorney presence at closing. Free initial consultation in most areas.

What happens at a real estate closing?

Closing is the final step in a real estate transaction where legal ownership transfers from seller to buyer. All parties (or their representatives) meet - in person or remotely via e-closing - to sign documents, transfer funds, and record the deed.

The process typically takes 1 to 2 hours. The closing agent (title company, escrow company, or real estate attorney depending on your state) coordinates the signing of loan documents, the transfer of funds, and the recording of the deed with the county recorder's office.

Title transfers the moment the deed is recorded - not when you sign the documents. Recording typically happens same day but can take 1 to 3 business days in some counties. You may want to review our title defect analyzer if any issues arose during the title search before closing.

What is the closing disclosure and why does it matter?

The Closing Disclosure (CD) is a 5-page federal form that itemizes every cost in your transaction: loan terms, monthly payment, closing costs, prepaid items, and cash to close. Lenders must deliver it to buyers at least 3 business days before closing.

Review it line by line against your Loan Estimate. Fees can increase, decrease, or stay the same depending on the category - some lenders "low-ball" estimates to win your business and inflate final fees at closing. Charges for services you chose yourself can increase without limit. Origination charges and transfer taxes can't increase at all.

If the CD arrives late, your closing date automatically shifts 3 business days from delivery. An attorney reviews the CD for improper fee increases and undisclosed charges - a critical protection covered by the real estate contract reviewer for your broader purchase agreement.

What closing costs should buyers expect to pay?

Buyer closing costs typically run 2% to 5% of the purchase price. On a $400,000 home, that's $8,000 to $20,000 in addition to the down payment.

Major categories include: lender fees (origination, underwriting, appraisal - typically $1,500 to $4,000), title insurance (owner's and lender's policies combined - typically $1,000 to $3,000), prepaid items (homeowner's insurance premium, prepaid interest, initial escrow deposit - typically $3,000 to $6,000), and government recording fees (typically $50 to $250).

Sellers typically pay the real estate agent commissions (traditionally 5% to 6% of sale price, though this is evolving post-NAR settlement), transfer taxes, and their own attorney fees. Negotiate which party pays which costs during the contract phase - it's all negotiable. Use the buyer and seller disclosure checklist to ensure all required disclosures are exchanged before closing day.

Frequently asked questions

Schedule closing at least 30 to 45 days after contract execution to allow time for loan processing, appraisal, title search, and underwriting. Cash purchases can close in as little as 7 to 14 days. FHA and VA loans typically require 45 to 60 days due to additional inspection and appraisal requirements. Always build in a buffer - last-minute delays from title issues, appraisal problems, or underwriting conditions are common. Make sure your purchase contract allows for reasonable extension without penalty before setting a firm date.

Most closing agents require a wire transfer or certified cashier's check for the cash-to-close amount. Personal checks are not accepted for large closing funds. Wire transfers must be initiated at least 24 to 48 hours before closing to clear in time. Confirm the exact wire instructions directly with your title company or closing attorney by phone - wire fraud targeting real estate transactions is rampant, and fraudsters intercept email instructions and redirect funds. Always verify routing and account numbers verbally before wiring.

It depends on your state. Some states (including New York, New Jersey, Massachusetts, Connecticut, Georgia, and South Carolina) require attorney involvement at closing by law. In most other states, a title company or escrow company handles closing without an attorney - but having one is still a smart choice. A real estate attorney reviews the closing disclosure for improper charges, confirms the title commitment is clean, and explains every document you're signing. Attorney fees at closing typically run $500 to $1,500 - a small cost relative to the transaction size.

Title insurance protects against defects in the chain of title that existed before your purchase - forged deeds, undisclosed heirs, unpaid liens, survey errors, and similar issues. There are 2 types: lender's title insurance (required by virtually all mortgage lenders) and owner's title insurance (optional but strongly recommended). A one-time premium at closing typically runs $1,000 to $2,500 and provides coverage for as long as you own the property. Title defects are more common than most buyers expect - roughly 1 in 3 title searches reveal an issue that must be resolved before closing.

The final walkthrough is the buyer's last inspection of the property - typically 24 to 48 hours before closing. Its purpose is to confirm the property is in the agreed-upon condition: seller's belongings are removed, agreed-upon repairs are complete, and no new damage has occurred since the inspection. It's not a new inspection - it's a verification. If you find problems during the walkthrough, you can negotiate a credit, delay closing until repairs are complete, or in serious cases, refuse to close. Document everything with photos and video regardless of what you find.