Navigating the Real Estate Closing Process
Navigating the Real Estate Closing Process
You've found the perfect home, your offer was accepted, and now you're heading toward closing day. But what exactly happens between "under contract" and "keys in hand"? The closing process can feel overwhelming if you don't know what to expect—but with the right preparation, it becomes much less stressful.
Whether you're buying or selling in Florida or South Carolina, here's your comprehensive guide to understanding closing—the timeline, the costs, the documents, and what happens at the closing table.
Key Takeaways
- Closing typically takes 30-45 days—though cash deals can close faster and complex situations may take longer.
- Review your Closing Disclosure 3+ days before closing—this is required by law and your chance to catch errors.
- Title insurance protects your investment—it's a one-time fee that covers you against ownership disputes.
- Florida uses title companies; South Carolina requires attorneys—the process differs slightly by state.
- Bring valid ID and certified funds to closing—personal checks are typically not accepted for closing costs.
- Complete your final walk-through—verify the property condition before signing anything.
The Closing Timeline: What Happens When
From accepted offer to closing day, here's what's happening behind the scenes:
Typical 30-45 Day Closing Timeline
Key Concepts You Need to Understand
Before diving into the details, let's clarify some terms you'll hear throughout the process:
Escrow Account
A neutral third-party account that holds funds and documents during the transaction. Your earnest money goes here. After closing, your lender may maintain an escrow account to pay property taxes and insurance on your behalf.
Title Insurance
One-time insurance that protects against ownership disputes, liens, or defects in the title that weren't discovered during the title search. Lender's title insurance is required; owner's title insurance is optional but highly recommended.
Closing Disclosure
A 5-page document detailing your final loan terms, monthly payment, and all closing costs. Lenders must provide this at least 3 business days before closing—review it carefully against your Loan Estimate.
Clear to Close
The lender's final approval indicating all conditions have been met and the loan is ready to fund. Until you receive "clear to close," the deal isn't final—so don't make major purchases or change jobs!
Understanding Closing Costs
Closing costs typically range from 2-5% of the purchase price for buyers and vary for sellers based on commissions and local customs. Here's what you can expect:
Buyer Closing Costs
| Cost Item | Typical Range | Who Pays |
|---|---|---|
| Loan Origination Fee | 0.5-1% of loan amount | Buyer |
| Appraisal Fee | $400-$700 | Buyer |
| Title Search & Insurance | $1,000-$3,000 | Varies by state* |
| Home Inspection | $350-$600 | Buyer |
| Survey | $300-$600 | Buyer (often required) |
| Recording Fees | $50-$250 | Buyer |
| Prepaid Items | Varies (taxes, insurance, interest) | Buyer |
*In Florida, sellers typically pay for owner's title insurance. In South Carolina, it's more commonly paid by buyers. This is negotiable.
I can help you estimate buyer or seller closing costs for your specific situation—no surprises at the closing table.
Get a Cost Estimate
Florida vs. South Carolina Closing Differences
The closing process differs between states. Here's what you need to know:
| Factor | Florida | South Carolina |
|---|---|---|
| Who Conducts Closing | Title company or closing agent | Attorney required by law |
| Who Pays Title Insurance | Seller typically pays owner's policy | Buyer typically pays (negotiable) |
| Transfer Tax (Doc Stamps) | $0.70 per $100 (seller pays on deed) | $1.85 per $500 (varies by county) |
| Property Tax Proration | Taxes paid in arrears; credit at closing | Taxes paid in arrears; credit at closing |
| Typical Closing Timeline | 30-45 days (cash can be faster) | 30-45 days (attorney scheduling may affect) |
Documents You'll Sign at Closing
Expect to sign a significant stack of paperwork. Here are the most important documents you should understand:
For Buyers
- Closing Disclosure (CD) — Final loan terms, interest rate, monthly payment, and itemized closing costs
- Promissory Note — Your promise to repay the loan; details the loan amount, interest rate, and repayment terms
- Mortgage/Deed of Trust — Gives the lender a security interest in the property; they can foreclose if you don't pay
- Deed — Transfers property ownership from seller to buyer; recorded with the county
- Title Insurance Policy — Your protection against title defects and ownership disputes
- Initial Escrow Disclosure — Shows what will be collected monthly for taxes and insurance
For Sellers
- Settlement Statement — Itemized accounting of all debits and credits in the transaction
- Deed — Transfers your ownership to the buyer; must be signed and notarized
- Affidavit of Title — Your sworn statement that you own the property and can transfer clear title
- 1099-S Form — For IRS reporting of the sale proceeds
- Loan Payoff Authorization — Authorizes payoff of your existing mortgage from sale proceeds
The Importance of Inspections
Inspections aren't technically part of "closing" but they happen during the contract period and can significantly impact the transaction:
Home Inspection
A general inspector examines structure, roof, electrical, plumbing, HVAC, and more. They identify issues that may need repair or further evaluation. Cost: $350-$600.
WDO/Termite Inspection
Required by most lenders. Checks for wood-destroying organisms including termites, carpenter ants, and wood rot. Critical in Florida and coastal SC. Cost: $75-$150.
Wind Mitigation (FL)
Documents your home's wind-resistant features. A favorable report can significantly reduce your homeowner's insurance premium—often paying for itself many times over. Cost: $75-$150.
4-Point Inspection
Often required for insurance on older homes. Evaluates the condition of roof, electrical, plumbing, and HVAC systems. Cost: $100-$200.
Your Pre-Closing Checklist
Don't leave anything to chance. Here's what buyers should complete before closing day:
Buyer Pre-Closing Checklist
- Review Closing Disclosure carefully — compare to Loan Estimate; question any discrepancies
- Arrange wire transfer or certified funds — get exact amount and wiring instructions from closing agent
- Verify wire instructions by phone — call the title company directly to confirm; wire fraud is real
- Schedule final walk-through — verify repairs were made and property condition hasn't changed
- Gather required documents — government-issued ID, proof of insurance, any outstanding items
- Set up utilities — arrange to have utilities transferred to your name on closing day
- Confirm closing time and location — know exactly where to go and when
- Don't make major financial changes — no large purchases, job changes, or new credit until after closing
What to Bring to Closing
Come prepared with these items:
- Valid government-issued photo ID — driver's license or passport (check expiration date!)
- Certified funds or wire confirmation — personal checks are not accepted for closing costs
- Proof of homeowner's insurance — your policy declarations page showing coverage
- Copy of the contract — for reference if any questions arise
- Your checkbook — for small last-minute adjustments (though most require certified funds)
Ready to Start Your Home Search?
Browse homes in Florida and South Carolina—and when you find the one, I'll guide you through closing smoothly.
Frequently Asked Questions
What is a Closing Disclosure?
The Closing Disclosure (CD) is a 5-page document that provides final details about your mortgage loan. It includes your loan terms, projected monthly payments, and a detailed breakdown of all closing costs. Lenders are required to provide it at least 3 business days before closing. Compare it carefully to your Loan Estimate—if anything changed significantly, ask why.
Can I back out of the sale before closing?
It depends on your contract contingencies. During the inspection period, financing contingency period, or if specific contingencies aren't met, buyers typically can exit with their earnest money. After contingencies expire, backing out usually means forfeiting your earnest money—and potentially facing legal action. Sellers have fewer exit options once under contract. Always consult your agent and attorney before attempting to cancel.
How long does closing take?
The typical closing timeline is 30-45 days from accepted offer to closing day. Cash purchases can close in as little as 7-14 days since there's no lender involved. Factors that can delay closing include appraisal issues, title problems, lender underwriting delays, or incomplete documentation. Plan for 45 days to be safe, and consider a shorter timeline a pleasant surprise.
Who attends the closing?
Typical attendees include the buyer(s), seller(s), real estate agents for both parties, and the closing agent (title company representative in Florida; attorney in South Carolina). Lender representatives may attend but often don't. In some cases, buyers and sellers close separately for convenience or comfort. Remote/electronic closings are becoming more common, allowing some or all documents to be signed digitally.
What is a junk fee and how do I avoid them?
Junk fees are excessive or unnecessary charges that inflate closing costs—things like "processing fees," "administrative fees," or marked-up third-party services. To avoid them: compare your Closing Disclosure to your Loan Estimate (significant increases require explanation), ask for itemization of any vague fees, shop around for title/closing services where permitted, and don't be afraid to negotiate or ask for fee waivers.
When do I get the keys to my new home?
Typically, you receive keys after all documents are signed and the transaction "funds"—meaning all money has been transferred and the deed is recorded. In Florida, this usually happens the same day as closing. In South Carolina, recording may happen the same day or next business day depending on timing. Your contract should specify when possession transfers. Most contracts specify "at closing" or "at funding/recording."
Closing Day: The Finish Line
After all the paperwork, inspections, and waiting, closing day is your reward. You'll sign a stack of documents, hand over certified funds, and walk out with the keys to your new home—or, if selling, a nice check and the freedom to move on to your next chapter.
The closing process doesn't have to be stressful. With the right preparation and a good team guiding you, it's simply the final step in an exciting journey.
Whether you're buying your first home, selling to downsize, or relocating to the coast, I'm here to help you navigate every step—including closing day. Explore homes for sale or learn about selling with me, and read more tips on my blog.
Recent Posts
GET IN TOUCH
