Closing Day Is The Finish Line, But The Work Starts Earlier
For most real estate buyers and sellers, closing day feels like the end of a long process. In reality, the closing process begins well before anyone sits down to sign documents. Understanding what happens, and when, helps you show up prepared and avoid last-minute surprises.
What Happens Before Closing
Once a purchase agreement is signed, both parties move into what is often called the escrow period. During this time, several things happen in parallel. The buyer’s lender orders an appraisal, the title company conducts a title search, and inspections are completed. If any issues come up, they are typically negotiated and resolved before closing day.
A title search is one of the more important steps in this phase. It reviews the property’s ownership history to confirm that the seller has a clear title and that there are no outstanding liens, judgments, or other encumbrances that could affect ownership. Title insurance is typically purchased at closing to protect against any issues that the search may have missed.
A Kalispell property lawyer can review title documents and purchase agreements before closing to identify any issues that need to be addressed in advance.
What To Bring To The Closing Table
Buyers should plan to bring:
- A government-issued photo ID
- A certified or cashier’s check, or confirmation of a wire transfer, for closing costs and the down payment
- Proof of homeowner’s insurance
- Any documents requested by the lender or title company
Sellers typically need their own photo ID and any keys, access codes, or documents related to the property. Both parties should review their closing disclosure or settlement statement carefully before arriving.
What Gets Signed At Closing
Closing involves a significant amount of paperwork. Buyers with a mortgage will sign the most documents, including the promissory note, the deed of trust or mortgage, and various lender disclosures. The seller signs the deed, which transfers ownership to the buyer.
Both parties sign the closing disclosure, which itemizes all costs associated with the transaction. Federal law requires that buyers receive this document at least three business days before closing. For more on what the closing disclosure must include, the Consumer Financial Protection Bureau provides a detailed breakdown of each section.
Closing Costs To Expect
Closing costs vary depending on the purchase price, loan type, and local fees. They typically include:
- Lender fees such as origination charges and underwriting costs
- Title insurance premiums for both lender and owner policies
- Recording fees paid to the county
- Prepaid items like property taxes and homeowner’s insurance
- Attorney or settlement fees, where applicable
Buyers generally pay between 2% and 5% of the purchase price in closing costs, though this varies. Sellers typically cover their own set of costs, including real estate commissions and any agreed-upon concessions.
After Signing, What Comes Next
Once all documents are signed and funds are confirmed, the deed is recorded with the county, and ownership officially transfers. In Montana, this can happen the same day or the following business day, depending on when funds are received.
Closing With Confidence
The home closing process moves quickly once it gets started, and small oversights can cause real delays. A Kalispell property lawyer at Silverman Law Office, PLLC works with Montana buyers and sellers to review documents, identify potential issues, and make sure the transaction closes cleanly. If you are approaching a closing date and want a second set of eyes on your paperwork, reaching out is a straightforward next step.