After you purchase a new home, you may have to wait several weeks (or even months) to finalize the sale and start moving in. Before you can move in, the final step towards owning the property involves attending a real estate closing where you finalize all the agreements you made with the seller and your mortgage lender for the finance and purchase of your new home.
During a real estate closing, many documents and funds will be exchanged to finish the transaction. For example, at this time, you will pay the seller the purchase price of the home using a combination of your own money, the proceeds of your mortgage, and your down payment. Once you complete this process, the seller will provide you with the deed and other documentation and offer you clear title to the home.
At the real estate closing, you will also receive the funding of your loan from your lender. Then, you will promise the lender (in writing) that you will pay back the amount of the loan and extend them a lien on the property.
In most cases, the closing will occur at the office of the settlement agent, which is usually the title company. Under special circumstances, the title agency can send a representative and you can close at the location of your choice.