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You’ve gotten through the hard part of getting a mortgage, and your lender has approved your application. Now you are just waiting for that final step: the closing. This guide covers what to do, and what to avoid, as you prepare for a mortgage closing.
This is when the money exchanges hands, you sign the paperwork, and then you become the owner of the property.
But before that happens, experts say there are some things to do and not to do to prepare for that closing so nothing goes awry.
“A mortgage is a complicated situation with a lot of moving parts,” says Patti Handy, mortgage advisor at American Family Funding in Santa Clarita, California. “So by the time you get to the closing, it should be anti-climactic, and you should be just signing a lot of papers.”
But there are things that you shouldn’t do. And there are things you need to do before your closing to make it go smoothly and on time, she says. She has witnessed people actually blow it and lose the house of their dreams because they messed up at the last minute.
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What to avoid as you prepare for your mortgage closing
Don’t purchase anything or sign up for new credit. So many people figure they have the house now. As a result, they decide to go out and purchase new furniture or a refrigerator. They start using the reserved cash they had saved for the down payment or closing. Or worse, yet, they go sign up for a new store credit card to get what they want. Your lender will find out, and that could jeopardize getting your house.
“If there is additional credit that wasn’t listed when you applied, it will change the debt-to-income ratio and could delay the closing, or worst of all, you could lose the house completely,” Handy says. “And lenders do check your credit and your employment a few days before closing.”
Keep your bank accounts and your job steady until closing
Don’t move money around in your accounts. The bank statements have to match up with what you said originally on your loan application. Your money may come from several accounts at several different banks. If so, you need to show that on the application. A few weeks before the closing, it’s OK to move the money into one account to pay your closing costs. Just make sure these were the accounts you mentioned.
Don’t change jobs or neglect to inform your lender if your employer fires you or lays you off. “To have a job change even in the same profession and same industry will delay the closing. We have to verify income,” she says.
One of her clients lost his job in a layoff through no fault of his own. But it happened before the closing, and he didn’t tell Handy. During that last-minute verification of employment, her underwriter calls his workplace. They said, “Sorry, he doesn’t work here anymore.” That information came back to her.
“In this situation, his wife had enough income to save the deal. But if she didn’t, it would have fallen through,” she says.
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How to prepare for a mortgage closing
Review the Closing Disclosure. This document shows the finalized list of fees you will be paying at your closing. You must receive it at least three business days before closing. There shouldn’t be any surprises on the list.
Get a cashier’s check or wire transfer ready. Prepare all the money you will pay at the mortgage closing. The right amount will be on the Closing Disclosure. Ask the person conducting your closing which payment method to use.
Buy homeowner’s insurance. Bring your insurance policy and receipt to the closing. Mortgage lenders require you to have insurance in case something happens to the house.
Schedule final walk-through inspection. Make sure your purchase contract gives you the right to come into the house shortly before the closing. Use that visit to check whether the homeowners actually made all of the repairs they promised. Also make sure everything is in working order. For example, the homeowners may have promised to leave behind all those stainless steel appliances. If none of them are there anymore, you may be able to delay the closing until you remedy the situation.
Who attends a mortgage closing
When the closing finally arrives, the mortgage lender you worked with may or may not be there, Handy says.
“It depends on where you live on who is at the closing. In California, we have escrow companies, and the escrow officer is typically a notary public” who can witness and notarize each document’s signature, she says.
However, in other states, real estate attorneys take part. The people at the closing can include the buyer, the seller, the escrow or closing agent, a title company representative, the mortgage lender and possibly the real estate agents.
“Basically, you need to have your I.D. and cashier’s check with you,” she says. “At the end, there should be no questions. So that means you need to work with someone that is very reachable, responsive and willing to explain everything in detail about the process. A loan officer should tell you what’s happening and keep you informed.”
Check your home buying eligibility. Start here (Nov 8th, 2026)
