The full explanation
The lender sends the loan money to the settlement agent, who pays the seller and distributes the closing costs; the seller signs the deed that makes you the owner, and the documents are recorded with the county. Depending on the state, everyone signs together at a table or signatures are collected separately, sometimes online. Before you sign, read everything and ask about anything you do not understand.
An example
On closing day, Marta and José sign the mortgage and the promissory note, the seller signs the deed and they get the keys. A few days earlier they compared their Closing Disclosure with their Loan Estimate.
You will see it in…
- The Closing Disclosure, under “Closing Information” (closing date)
- Your purchase contract, which sets the requested closing date
- The CFPB's mortgage closing checklist
