When you buy a new home, your closing is the final step of the process. The Home Buying Institute explains that at closing, you, the seller, your mortgage lender representative, your title insurance company representative and your escrow agent all meet together to finalize all the details of your home purchase. 

In order of occurrence, the following represent the closing steps: 

  1. You sign legal documents that the escrow agent gives you. 
  2. (S)he collects a cashier’s check from you in the amount of your closing costs. 
  3. (S)he next collects a check from your mortgage company’s representative in the amount of your mortgage loan. 
  4. (S)he then gives a check to the seller representing the appropriate portion of the selling price he or she gets. 
  5. The seller, in turn, signs the warranty deed that passes the property’s legal title to you; if (s)he has not already provided you with a set of house keys, (s)he will now do so. 
  6. (S)he will probably give the executed warranty deed to the representative from your title insurance company, who will proceed to record it in the office of your county’s Recorder of Deeds before bringing it back to you at a later date. 

Closing costs 

You likely will pay pay closing costs equal to roughly 3% of your mortgage loan amount. Your mortgage lender should give you a Good Faith Estimate of these costs early on in the process. Closer to your closing date, you should then receive a HUD-1 Settlement Statement that itemizes each of your closing costs, including their respective natures and amounts. You can then go to go to your bank and get a cashier’s check in the total amount to give to your escrow agent at closing.