Final Step to Ownership: Closing Costs (1–5%)
by stazhkova on 20.10.2025
Hello. Today we will go over the final stage of purchasing real estate—the closing. At this step you have already completed all checks, obtained loan approval, and are ready for the transfer of ownership. I will explain in detail what exactly needs to be done before signing the documents so that the process proceeds without delays or unexpected issues.
Approval by the homeowners’ association (if required)
If the property is located in an area governed by a homeowners’ association (HOA), you must obtain its approval. This process can take up to 30 days, so submit the application in advance. Usually, the realtor accompanies this stage, helping to complete the forms and submit the necessary documents.
Title search and title insurance
Before closing, the title company checks for encumbrances: debts, liens, court judgments, restrictions on sale. If no problems are found, title insurance is arranged—a policy that protects you and the bank from possible future claims to ownership.
Obtaining a property insurance policy
Even if the bank does not require insurance, it is recommended to obtain it. It will protect you from losses in case of fire, flooding, or other unforeseen events. If the property is in a risk area, the bank may require a special policy, for example, flood insurance.
Final walk-through before closing
24–48 hours before signing the documents, a repeat walk-through of the property is conducted. During this check you must ensure that the property is in the same condition as at the time of signing the contract, and verify the completion of all repair or preparatory work agreed upon with the seller.
Closing costs
Closing costs are approximately 1% to 5% of the property price. They include taxes, notary fees, title company fees, insurance premiums, and document processing/filing fees. Usually most of these costs are borne by the buyer, but the terms can be negotiated with the seller.
Signing the documents and handing over the keys
On the day of closing, you meet with the seller’s representative and sign all necessary documents. If the closing is conducted remotely, the bank may send a mobile notary to you. After signing and transferring the funds, ownership passes to you, and you receive the keys to the property.
Conclusion
Closing is the final step in the property purchase process. If you are at this stage, it means all the main tasks have already been completed, and ahead lies only the paperwork and receiving the keys. I hope this series has helped you understand each stage of the purchase and prepare for it. I wish you a successful closing and a comfortable settling-in in your new home.
