Loan Closing Process Explained To You


Loan closing, the final frontier between you and the keys to your new home or the many benefits of refinancing your mortgage. It’s the culmination of a series of steps that involve preparation, documentation, and coordination among various parties as explained in our mortgage guide. At Buckingham Mortgage LLC, we aim to guide you through this process seamlessly.

What Closing Loan Means

Closing Loan is the conclusive stage of the homebuying or mortgage refinancing transaction. For homebuyers, it’s the moment of receiving the keys to your new home. For those refinancing, it’s the final signing of paperwork. Different states may have varying definitions and procedures regarding closing, making it crucial to understand your local regulations.

The Basic Steps of Closing Loans

  1. Loan Signing: This step involves signing all necessary paperwork, indicating your agreement to the terms of the mortgage.
  2. Loan Funding: Funds are transferred to escrow, ensuring all financial aspects are in order before proceeding.
  3. Recording: The grant deed or mortgage documents are officially recorded at the County Recorder’s office, affirming legal ownership.
  4. Disbursement: All parties involved receive their respective payments, and if you’re a homebuyer, you’ll get the keys to your new home.

Wet vs. Dry States: A Distinction in Closing Processes

In real estate terms, “wet” states refer to locations where the entire closing process, from signing to disbursement, occurs on the same day. Conversely, “dry” states have a slight delay between signing and receiving keys, allowing for additional legal verifications. Understanding this distinction helps manage expectations regarding the closing timeline.

Homebuyers Closing Loan Timeline

The timeline for homebuyers varies but generally spans 3 to 7 business days. Key milestones include:

  • Loan cleared to close
  • Closing Disclosure issuance with a mandatory waiting period
  • Final walkthrough
  • Loan signing, funding, recording, and disbursement
  • Receipt of keys (for wet states) or a slight delay in key receipt (for dry states)

Refinance Closing Timeline

Refinancing timelines typically range from 6 to 9 business days and involve similar steps as homebuyers, with added considerations for loan types and property status (primary residence vs. investment property).

  • Loan cleared to close
  • Closing Disclosure issued (with a 3-day waiting period before loan signing)
  • Loan signing (with a 3-day right of rescission cooling-off period)
  • Loan funding → Recording → Disbursement
  • Disbursement for cash-out customers typically occurs 3–5 days after funding confirmation.

Common Causes of Closing Loans Delays

Despite meticulous planning, closing delays can occur due to various factors:

  1. Appraisal Issues: Ensuring the property’s value aligns with the loan amount is crucial. Appraisal gaps or required repairs can delay closing.
  2. Financing Issues: Additional documentation or changes in financial status can impact the loan approval process.

Managing Closing Delays

Staying proactive and communicative with all involved parties is essential to address and mitigate potential closing delays. Understanding the reasons behind delays helps in finding effective solutions.

Post-Closing Loans Responsibilities

After closing, new homeowners should focus on:

  • Updating identification and official documents with the new address
  • Exploring property tax exemptions or benefits
  • Preparing for the first mortgage payment and potential servicing transitions

At Buckingham Mortgage LLC, we prioritize efficiency and transparency in the closing process. Our advanced technology and dedicated team strive to streamline procedures, ensuring a faster and smoother experience for our clients. Ready to move on?


Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Buckingham Mortgage LLC for current rates and more information. All information provided is for informational and educational purposes only. Buckingham Mortgage LLC does not guarantee the quality, accuracy, or completeness of the information provided. Consult a financial advisor for personalized advice.

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