Opening summary
A loan closing is the final step before funds are disbursed or title transfers. Use a checklist to avoid last-minute delays, compare the Loan Estimate to the Closing Disclosure, and confirm how much cash or certified funds you must bring. The Consumer Financial Protection Bureau requires lenders to give a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing (Consumer Financial Protection Bureau).
Essential documents to bring to closing
- Government-issued photo ID(s) for all borrowers (driver’s license, passport).
- Social Security number or Social Security card (not always required at the table but have it available).
- Loan Estimate and Closing Disclosure — bring both for line-by-line comparison.
- Promissory Note and Deed of Trust or Mortgage (prepared by the lender).
- Purchase contract (for home purchases) and any seller-paid closing cost agreements.
- Proof of homeowners insurance declarations page and paid receipt if required.
- Title documents or prior deed if requested by title company.
- Proof of funds for closing: certified check or wired funds per escrow/title instructions (verify wiring instructions by phone).
- Payoff statements for existing liens if refinancing.
- Recent bank statements, tax returns, pay stubs or proof of income if lender requests last-minute verification.
- HOA documents and transfer statements for properties in associations.
Common final costs to expect
- Origination or underwriting fees (sometimes negotiable).
- Appraisal fee and inspection fees.
- Title search and title insurance (owner’s and lender’s policies).
- Escrow/settlement agent fee and recording fees charged by the county.
- Prepaid items and escrows: property taxes, homeowners insurance premiums, mortgage interest due from closing date.
- Credit report fee and courier fees.
- Any lender-required mortgage insurance premiums.
Typical range: most buyers see closing costs between about 2% and 5% of the loan amount, though lower or higher totals can occur depending on local fees and loan type.
Timing and review rules you should know
- Loan Estimate: delivered within three business days after loan application. Compare the fees here to what appears on the Closing Disclosure. (Consumer Financial Protection Bureau)
- Closing Disclosure: must be provided at least three business days before consummation on most consumer mortgage loans; use that time to review for changes.
- If material changes occur after the Closing Disclosure is issued, the three-day clock can reset for certain changes.
Checklist by loan type (brief)
- Purchase mortgage: purchase contract, proof of earnest money, seller closing instructions, mortgage documents, homeowner insurance.
- Refinance: current mortgage statement, payoff quote, recent title report (if available), any documents proving cash-out use if applicable.
- Auto or personal loan: photo ID, proof of insurance (auto), proof of income, vehicle title or purchase contract for auto loans.
Professional tips to avoid delays
- Start early: collect tax returns, pay stubs, bank statements and proof of insurance before your scheduled closing date.
- Verify wiring instructions by phone using a known number—wiring fraud targets closings. Confirm any last-minute changes directly with your lender or title company.
- Compare the Loan Estimate to the Closing Disclosure line-by-line; ask the lender for explanations of differences and ask for corrected disclosures if needed.
- Ask for an itemized settlement statement ahead of the closing appointment and review it with your agent or attorney.
- Shop title insurance and review who pays which fees in your purchase contract. Learn more about typical mortgage fees in our guide on mortgage closing costs.
Common mistakes borrowers make
- Bringing insufficient funds or the wrong type of payment (many title companies require certified checks or wired funds).
- Failing to compare the Loan Estimate and Closing Disclosure, which can hide unexpected increases in fees or prepaid amounts.
- Ignoring title exceptions or unresolved liens that can delay recording.
- Falling for phishing or wire-fraud scams—confirm wiring details independently.
Short FAQs
- How long does closing take? The in-person signing usually lasts 30–90 minutes; complex transactions may take longer. The overall process from application to closing often spans weeks.
- Can closing costs be rolled into the loan? Sometimes—some loans allow you to finance certain closing costs into the mortgage or negotiate seller-paid closing costs, but that increases loan balance and may change your APR.
- What if I find an error on the Closing Disclosure? Ask the lender or settlement agent to correct it before signing. If corrections are material, you may be entitled to an additional review period per federal rules.
Related reading
- For details on fee types and saving strategies, see our article “Mortgage Closing Costs Explained: Fees That Add Up Quickly.” (https://finhelp.io/glossary/mortgage-closing-costs-explained-fees-that-add-up-quickly/)
- First-time buyers should also review “Homebuyer’s Guide to Closing Costs: What Buyers and Sellers Typically Pay.” (https://finhelp.io/glossary/homebuyers-guide-to-closing-costs-what-buyers-and-sellers-typically-pay/)
Professional disclaimer
This article is educational and not personalized financial advice. Rules and forms change; for loan-specific guidance consult your lender, title company, or a qualified financial professional. Author draws on 15+ years advising clients on closings.
Authoritative sources
- Consumer Financial Protection Bureau: Loan Estimate and Closing Disclosure timing and consumer protections (consumerfinance.gov).
- U.S. Department of Housing and Urban Development and state recording offices for local recording fees and requirements.
