Heading to the Closing Table

Posted by Steph Kaye on Thursday, February 20th, 2014 at 1:27pm.

What Is a Closing?


Buying a house is an exciting time and the more you know about the process, the more relaxed and confident you will be going through it. The closing is when the house buyer and seller implement all of the agreements made in the sales contract. Meaning, it is about the transfer of money and documents so that the seller, can transfer ownership and possession of the property free and clear to the buyer. Also, you, the seller, will pay off all loans that you are still carrying on the house and pay all of the parties who provided documents or services to expedite the sale and closing.

The most common type of closing has both the sellers and the buyers of the home sitting at the closing table. A closing agent from the title or closing company is also present to guide all of the parties through the closing process. Certain states may require you to hire an attorney. Closing on a home requires a lot of signatures on many legal documents, by both the buyers and the sellers.

The closing costs, typically run around 3% of your loan amount, so if you're borrowing $100,000 you can expect closing costs to be about$3,000 or if you're borrowing $200,000 you can expect closing costs of about $6,000 

The first set of documents you will need to sign will be your loan package. The 2 most important documents you sign here will be: 1). the Note, which is the document that shows the terms of your loan, and is simply the document that acts as your written promise to repay the loan amount; and 2). the Mortgage, which is the document that helps secure your promise to repay the amount stated by the Note. Through the mortgage, you are pledging your new home as collateral to the bank until the loan is paid off. Once all the loan documents are signed, the seller's rrepresentative will have a smaller stack of documents to sign such as disclosures for title insurance charges and transfer tax declarations. Again, your title representative or attorney should review this documentation with you and should ensure everything is in order. If you have any questions about any of the documents you are signing or feel something may be in error, do not hesitate to speak up and ask your title representative or attorney for clarification.

The bottom line is that the paperwork you sign ultimately transfers ownership of the home. For the buyer, the closing also involves signing the Promissory Note and Mortgage documents. These documents have you acknowledge that you owe the lender the agreed upon amount for the Mortgage. After everything is signed and certified, or when cashier’s checks are collected, the closing agent makes copies of all of the documents that pertain to you.


  • Each buyer needs a government issued photo I.D., such as a driver’s license
  • Certified or cashier’s check for the closing costs that you’ll owe and made out to the title or closing company
  • Any outstanding documents or paperwork that you have not yet provided to the title company or mortgage loan officer (i.e., condo approval letter or originals of copies you’ve provided of other documents)


  • Copies of all of the keys to the house
  • Garage door openers
  • Codes for keyless entry to the house or alarm system
  • Certified or cashier’s check made payable to the title or closing company, if these costs are not being deducted from the sales price
  • Each seller needs a government issued photo I.D., such as a driver’s license

The seller then hands over the keys, garage door openers, and any other needed information to the buyer, then the sale and the purchase are complete. The buyer is now the proud owner of the home. The seller walks away with a check for the profit of the home sale and everyone walks away from the closing table satisfied. Congratulations!


If you would like information on your local real estate market, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you.


Lang Premier Properties are Birmingham Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Max Broock in Birmingham, Michigan. See what past clients have to say about Stephanie Lang.  Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.

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