The home closing process has six main steps: selecting a closing agent, drafting an escrow agreement, conducting a title search, choosing title insurance, receiving your Closing Disclosure, and signing at closing. From an accepted offer to keys in hand, closing typically takes 30 to 90 days, with most transactions wrapping up in about a month.
Key facts
- Closing usually happens 30 to 90 days after the seller accepts your offer, and often closer to 30 days.
- Your lender must deliver a Closing Disclosure at least three business days before closing.
- An owner's title insurance policy protects your equity for the full purchase price, while a lender's policy only covers the loan.
- Title Resources Inc. is locally owned, has served clients since 2005, and has closed over 10,000 titles across Missouri, Illinois, Colorado, Florida, and Indiana.
How do you choose a closing agent?
As soon as your sales contract is accepted, the behind-the-scenes work begins. If you are working with a real estate agent, they may place an order with a closing agent on your behalf with your permission. The closing agent can be a title company, an escrow company, or a settlement company.
Most homebuyers rely on their real estate agent to recommend a closing agent they know to be professional, reliable, and efficient. You can also choose your own. The closing agent oversees the entire process and makes sure each step happens in the right order and on time. Reach out to Title Resources Inc. (The Title Guy) to get a quote for your fees.
What is an escrow agreement?
A contract or escrow agreement is drafted, and the closing agent reviews it for completeness and accuracy. The agent also places your earnest money deposit into an escrow account. Those funds stay in escrow until closing, protecting both buyer and seller until every condition is met.
What does a title search find?
Once the title order is placed, the title company searches the public records to identify issues such as liens against the property or utility easements. If a problem is discovered, most often the title professional resolves it without you ever knowing. According to the American Land Title Association, title professionals find and fix issues in roughly one in three transactions. After the search is complete, the title company can issue a title insurance policy.
How do you shop for title insurance?
There are two kinds of title insurance coverage. A lender's policy covers the lender for the amount of the mortgage loan, and an owner's policy covers you for the amount of the purchase price. If you are financing the home, your lender will typically require a lender's policy, but that policy protects only the lender.
We always recommend an owner's policy to protect your investment. The party that pays for the owner's policy varies from state to state, so ask your settlement agent for guidance before closing. You can learn more at titleresourcesinc.com/title-insurance/.
When do you get the Closing Disclosure?
Your lender must provide a Closing Disclosure at least three business days before closing, and your lender may have a closing agent deliver it for them. This document details your final loan terms and closing costs so you can review them without pressure.
If certain significant changes happen between delivery and closing, you must receive a new form and an additional three-business-day waiting period. That reset applies if the creditor makes any of the following changes:
- Increases the APR above 1/8 of a percent for most loans (or 1/4 of a percent for loans with irregular payments or periods).
- Changes the loan product.
- Adds a prepayment penalty to the loan.
Less significant changes can be disclosed on a revised Closing Disclosure at or before closing without delaying the date.
What happens on closing day?
As closing day approaches, the closing agent orders any updated information that may be required. Once the agent confirms with the lender and the seller, they set a final date, time, and location for the closing.
On closing day, all of the behind-the-scenes work is complete. While you have been busy packing, ordering utilities, and coordinating movers, your closing agent has managed the paperwork so you can sign with confidence and collect your keys.
Common questions about the home closing process
How long does closing take from offer to keys?
Closing generally happens 30 to 90 days after your offer is accepted, and it can be faster or slower depending on your agreed-upon terms. In our experience, most transactions close in about a month. Financing, appraisals, and title issues are the most common factors that affect the timeline.
Who chooses the closing agent, the buyer or the seller?
Either party can choose, but most buyers rely on their real estate agent's recommendation. You have the right to select your own closing agent if you prefer. Choosing an experienced local company like Title Resources Inc. helps keep the process on schedule.
Do I have to buy owner's title insurance?
An owner's policy is not always legally required, but it is strongly recommended because a lender's policy protects only the loan, not your equity. For a one-time fee, an owner's policy protects your property rights for as long as you or your heirs own the home. Ask your settlement agent who pays for it in your state.
Why is there a three-day waiting period before closing?
Federal rules require your lender to deliver the Closing Disclosure at least three business days before you sign. This gives you time to compare your final terms against your Loan Estimate. Major changes to your loan restart the three-day clock.
Title Resources Inc. guides homebuyers through every step of closing with clear communication and meticulous title work. Call (636) 527-9670 or email orders@TitleResourcesInc.com, or start your file at titleresourcesinc.com/order-title/.
