The closing day marks an exciting milestone for Illinois home buyers. But it can also be a long day full of signing paperwork, transferring funds, and anticipation. If you know what to expect, it makes the time go by quicker.
Here’s an inside look at the timeline of events on a typical Chicago, Illinois real estate closing day.
How long Does The Closing day Take?
Closing day typically takes 1 to 2 hours. It begins with signing of documents by buyers and sellers, then handling lender-specific documents. Next, the deed is transferred from seller to buyer, funds are exchanged, records are filed, and finally keys are handed over. And voila – you’re a homeowner!
First, let’s set expectations – most closing day appointments run 1-2 hours from start to finish. However, technically the closing process can span much longer as documents are signed in stages and funds are transferred.
Now, here is what you can expect on the big day:
Step 1. Initial Document Signing
The first series of documents are provided for buyers and sellers to review and sign by their respective attorneys, including the final closing disclosure, deed, settlement statements, and additional legal and title documents.
Expect to spend around 20-30 minutes reviewing and signing this initial batch of paperwork.
Step 2. Lender Documents Executed
If utilizing financing, the buyers will sign all lender-specific documents at this time, including the mortgage, note, loan disclosures, etc.
Set aside another 15-20 minutes for this step. Buyers should already be familiar with the terms of the loan.
Step 3. Seller Signs Deed Over
Once all documents are signed, the settlement agent will work with the seller to execute the deed transferring ownership of the property over to the buyer. This is typically just a quick 1-2 minute process.
Step 4. Funds Exchange & Recording
The lender and buyer’s funds are wired in and the title company disburses funds to the appropriate parties.
The deed and loan documents are sent for county recording to make the purchase and new mortgage official. This all happens in the background after signing.
Step 5. Closing Package & Key Exchange
Finally, the buyer receives a closing package with copies of documents, recorded deed, keys, garage door openers, warranties, etc.
The listing agent will coordinate the official key hand-off.
Celebrate your new home!
As you can see, buyers can expect to spend 1-2 hours at the closing location signing documents, reviewing contracts, and exchanging funds/keys.
Here are some explanations:
- Staggered signings – If schedules conflict, buyers and sellers may sign at different times, or even different locations.
- Waiting periods – You may experience short delays as documents are reviewed and approved by the attorneys, title company, and lender.
- Wire transfers – Funds from lenders/buyers can take hours to transfer and confirm.
- Recording paperwork – Documents must be recorded and filed with the county.
- Quality control – The attorneys, title company and lender review all signed documents for errors after signings.
While the buyer and seller signing appointment spans 1-2 hours, the entire process involving coordination between all parties, closing paperwork processing, funds transfer, and quality control can take much longer.
Be flexible if waiting periods occur, and bring snacks!
I hope this gives you a realistic preview of what to expect on closing day. Learn more about How long does it take to close on a house in Chicago, Illinois.
Let me know if any other questions come up!