How to close on a house: Step-by-step guide

What you’ll learn

— What it means to close on a home and where it falls on the home buying timeline

— 11 steps in the house closing process, from offer acceptance to getting your keys

— Which documents you’ll sign during closing, including the closing disclosure and promissory note

— What to expect at a closing and what can speed it up or slow it down

— Tips to avoid delays and ensure a smooth process

By the time the seller accepts your offer on a home, you’ve already gone through a long process, from touring houses to comparing mortgages. You’re almost at the finish line, and there’s just one step left: closing the deal.

But how do you close on a house? Read this guide to understand the mortgage closing process and secure your dream home confidently.

What’s the closing process on a house? 11 steps

The mortgage closing process begins once your offer is accepted, and it continues up until the moment you receive your keys. Here’s how to close on a house, step-by-step.

1. Your offer’s accepted

Closing a home starts when the seller says yes to your offer. At this point, you’ll usually sign a purchase agreement and pay earnest money, which is a small deposit to confirm you’re committed to buying.

At this time, you and the seller will set a few important dates. This includes deadlines for inspections, the mortgage rate lock, and the official closing. Your real estate agent and lender can lay this schedule out so nothing slips through the cracks.

2. Opening an escrow account

Next, your agent or lawyer will help you open an escrow account. This is a bank account that holds your earnest money and, eventually, your down payment and closing costs.

The escrow or settlement company (a neutral third party) will collect and hold paperwork from you, your lender, and the seller. They verify details, like identity and insurance information, and keep the documents safe during the transaction.

3. Locking in interest rate

Locking in your mortgage rate is next. A rate lock will pin down your interest rate for a set period (usually 30–60 days), which will protect you from market swings as your lender processes the loan.

Compare today’s mortgage rates to see how different terms affect your monthly payment. You can find your ideal rates with Better. Interest rates greatly impact your long-term costs, and Better lets you lock-in the best terms on the market.

...in as little as 3 minutes – no credit impact

4. Completing the application and turning over documents

Even after pre-approval, your lender has to underwrite the loan. In this process, providers verify your income, examine your bank statements and assets, and check your credit and debt-to-income (DTI) ratio.

To move this along faster, gather and organize the necessary paperwork in advance.

5. Scheduling a home inspection

Most home buyers order an inspection to confirm the house’s value and condition. The inspector reviews the home’s structure and systems, then follows up with a detailed report of their findings.

If the inspector identifies any issues, you can have your real estate agent negotiate repairs or a price reduction. 

6. Ordering the appraisal

Your lender will hire a licensed appraiser to estimate the value of the property. This professional compares the home to similar nearby residences that have sold recently.

The appraisal is designed to confirm that the home’s worth what you’re paying. If the results come in lower than expected, it’s possible you’ll need to renegotiate the price or explore other financing options with your lender.

7. Title search and title insurance

A title company conducts a search to confirm the seller is its rightful owner. They’ll also look for issues like unpaid taxes or liens on the property. If anything surfaces, the seller generally needs to take care of them before closing can move forward.

This company will also offer title insurance, which protects you and the lender if a problem comes up later, like a previously unknown heir or recording error. The one-time cost provides long-term protection and takes a little stress out of home buying.

8. Securing homeowners insurance and finalizing the loan approval

Before close, you’ll need to select a homeowners insurance policy and show proof of coverage to the lender. This usually covers damage to your home and belongings, accidents that happen on your property, and hotel stays if your house is unusable (during repairs, for example). This step is required for most mortgages. 

9. Reviewing your closing disclosure

At least three business days before closing, you’ll receive your closing disclosure (CD). This document lays out the final loan terms, monthly payment, and closing costs. Take your time reading through it, and don’t be afraid to ask your lender for clarification and tweaks. For instance, you’ll want to ask them to print a new one if they misspell your name.

10. The final walk-through

Within approximately 24 hours of closing, you’ll usually do a final walk-through with your agent. This is your chance to confirm that agreed-upon repairs have been completed and that the home is in the condition you expect.

Bring a copy of your inspection report and test lights, faucets, and major appliances. If anything seems wrong, tell your agent before you sit down to sign.

11. Attend the closing and sign documents

On the big day, you’ll meet with the closing agent (either online or in person). Expect to sign a few documents, including the promissory note, the mortgage or deed of trust, your CD, and deed. 

At the meeting, you’ll also confirm how you’ll pay closing costs. Once funds are transferred and the deed is transferred, you’ve officially become a homeowner. It’s time to collect your keys. 🎉

What documents should you bring to the closing?

Every closing is a little bit different, but most buyers have the same checklist. You’ll typically need:

— A government-issued ID

— Proof of homeowners insurance

— Your CD

— The promissory note

— The mortgage or deed of trust

— The title documents.

If you need to bring money to close, ask your lender if they need a wire confirmation or cashier’s check. 

How long does it take to close on a house?

Most purchases close in about 44 days.

The exact timing depends on the loan type and how quickly each part of the process comes together. If you’re looking for a faster close, try financing with Better — our average close time is 32 days, 12 days faster than the average.

Tips for a simple house closing process

Here’s some advice to help make closing day feel like a cinch:

— Hold off on major purchases until after close. New debt can change your DTI ratio and slow underwriting. 

— Keep your employment stable, and if your situation changes, let your lender know.

— Review the CD carefully, and ask questions about anything that doesn’t align with your expectations.

— Stay in contact with your lender and agent to spot potential issues early.

— Keep your documents close by in case you need to share paperwork quickly. 

— Respond to lender requests and supply updated information promptly to keep underwriting smooth.

From buyer to homeowner

Closing seems complicated, but the steps are concrete: Gather your documents, lock-in a great interest rate, and sign on the dotted line. If you need help to guide you from offer to close, give Better a try.

Better makes closing simple. Upload documents from your laptop or phone, compare rates, and ask our team of experts any question, any time. If you finance your loan with Better Mortgage and work with a Better Real Estate Partner Agent, you’ll save $2,000 on your closing costs.

Step into homeownership stress-free with Better at your side.

...in as little as 3 minutes – no credit impact

FAQ

Can I sign my closing documents remotely?

In many areas, yes. Some title companies offer remote online notarization, but availability depends on your state and loan type.

What can cause delays when closing on a house?

Common causes are usually related to appraisal backlogs, title issues, missing paperwork, or last-minute shifts in income. While some of this is out of your control, you can do your part by responding to requests and providing documents quickly.

What costs are involved in closing?

Closings costs can run about 2–5% of the purchase price. They may include lender fees, appraisal and title services, taxes, and homeowners insurance.