Fifth Step - Closing

Closing

•    Signing
At closing, you will sign the documents necessary to complete the transaction.  Closings occur at different places in different states.  For instance, some states require that the closing take place at a closing attorney’s office while others use a title or escrow company.

•    Funding
Once you have signed the documents, the title company will send the completed papers back to the lender for funding.  In this process, the lender confirms that all its instructions to the title company were followed and “funds” the loan.  The title company then disperses the funds strictly per written instructions.

•    Recording
The next day, the title company records all legal documents that have been executed and records a conveyance on all old liens.  Once the new loan (and grant deed in the case of a purchase) has been recorded, the loan and escrow are considered closed.