Checklist of Closing Documents for Buyers: Here’s What You’ll Sign to Close

On this page, you’ll find a checklist of mortgage closing documents that home buyers typically have to sign on the day they close.

Just note the closing process itself can vary from one state to another, and for different mortgage programs. So you might have more (or fewer) documents to sign on closing day than those listed below.

Mortgage Paperwork, Rounds One and Two

Home buyers provide a variety of documents throughout the buying process. For the sake of simplicity, let’s split them up into two main groups:

1. Round one — Buyers who use mortgage loans to finance their purchases encounter a lot of paperwork on the front end of the process, when they first apply for a loan and get pre-approved.
2. Round two — There’s also a lot of paperwork on the back end of the process, on the day you actually close on the home. We will focus on these documents for the rest of this guide.

A real estate “closing” is the final step in the home buying process. This is where the buyer signs all of the finalized mortgage documents and other paperwork, and when the funds are distributed to the appropriate parties. It finalizes or “closes” the deal, hence the term.

Checklist of Closing Documents for Buyers

So, what kind of paperwork will you have to sign when you close? While the process can vary from one borrower to the next, there are some commonalities that apply to most situations. Here’s a checklist of common documents that are needed for the mortgage closing process.

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1. The Mortgage Promissory Note

This is one of the most important documents home buyers sign on closing day, and you’ll soon understand why. This doc is also referred to as the “mortgage note” for short, and sometimes just “the note.”

By signing the promissory note, you are agreeing to repay the mortgage loan as outlined within the document. The note will contain important details relating to your loan, such as the total amount you owe, the interest rate assigned, the length of the repayment period (e.g., 30 years), and other key details.

It also specifies where the payments are to be sent, and what happens in the event of default (where the borrower fails to repay the debt).

As a home buyer and borrower, it’s crucial that you read this mortgage document at closing and ask questions about anything you don’t understand. The promissory note obligates you to repay the debt in the manner specified. So you want to make sure you understand it prior to signing.

View a sample mortgage note (PDF)

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2. The Mortgage / Deed of Trust / Security Instrument

The mortgage or deed of trust gives the lender a legal right to take the home back through foreclosure, should you fail to repay the debt going forward.

This closing document is also referred to as the “security instrument.” What you need to know is this: When you hear your lender talk about “the mortgage,” they’re probably referring to the deed of trust in particular.

The deed of trust is a fairly lengthy form, and most of it is boilerplate. As a borrower, you should pay particular attention to the fill-in-the-blank portions of the deed of trust / security instrument. Those are the sections that will contain information specific to your loan.

View a sample deed of trust (PDF)

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3. The deed (for property transfer).

You’ll notice there are two closing documents on this list with “deed” in the title. But they’re actually two separate things, so bear with me here.

The deed of trust mentioned earlier (a.k.a., “the mortgage”) gives the lender the right to foreclose on the home if you don’t make your payments. The “deed” covered here is the document that transfers ownership of the property from the seller to the buyer.

The terminology here is confusing. So let’s clarify it again:

• Deed: Document used to give the new owner rights to the property.
• Deed of trust: Document that allows the lender to take the home in default scenarios.

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4. The Closing Disclosure

This is another important document home buyers sign at closing. Actually, you should receive this disclosure before the day you close.

Federal law requires mortgage lenders to give borrowers a “Closing Disclosure” document three days prior to the scheduled close. This gives you time to review the disclosure and, if necessary, resolve any issues.

As its title suggests, the Closing Disclosure shows how much money you’ll have to pay on the day you close. This includes whatever down payment is due, along with all of your other closing costs. Collectively, these items are referred to as your “cash to close” amount.

In a typical home-buying scenario, the borrower will bring this amount to the closing in the form of a cashier’s check. A wire transfer is another option, but most people bring a check.

Home buyers should review this mortgage closing document as soon as they receive it. If something looks different from what you expected, be sure to ask your loan officer and/or escrow agent about it. The idea is to get your questions answered and resolve any issues prior to the closing day, to avoid unwanted delays.

View a sample closing disclosure (PDF)

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5. The initial escrow disclosure statement.

This document, which home buyers usually sign at closing, shows the specific charges you will pay into your escrow account each month (in accordance with the terms of your mortgage agreement).

An escrow account is a special kind of account used to pay property-related expenses. As a homeowner, you pay money into the account. And your mortgage lender or bank then uses those funds to pay your property taxes and home insurance premiums on your behalf.

When you sign the initial escrow disclosure statement at closing, you are basically agreeing to the terms of that arrangement.

View a sample escrow disclosure (PDF)

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6. The transfer tax declaration (in some states)

This is a regional closing document that’s required in some states but not in others. So, depending on where you live, you might have to sign this document when you close on a home as well.

It’s primarily used in states (and counties) that charge a property transfer tax. Both the home buyer and seller have to sign the transfer tax declaration, at or before closing.

Digital Signatures Are Common These Days

In today’s digital age, many aspects of the home buying and closing process can be completed online. This applies to document signing as well.

Platforms like DocuSign allow home buyers and sellers to review and sign closing documents electronically, from anywhere they have an internet connection. Web-based document management can reduce and sometimes even eliminate the need for in-person meetings and paperwork.

The end result is a more streamlined and efficient process, with greater convenience for all parties involved in the transaction.

Avoiding Fraud When Signing Documents

The Internet can streamline the closing process and make it easier for home buyers to review and sign documents. But it also brings additional risks, such as wire fraud and email “phishing” scams.

According to the Consumer Financial Protection Bureau, a government agency:

“Scammers are increasingly targeting real estate professionals, seeking to compromise their email in order to monitor email correspondences with clients and identify upcoming real estate transactions. During the closing process, scammers send spoofed emails to homebuyers – posing as the real estate agent, settlement agent, legal representative or another trusted individuals – with false instructions for wiring closing funds.”

Home buyers often make “easy prey” for these scammers, because they’re usually eager to complete the process and move into their new homes. They’re also expecting these types of emails from their escrow or closing agents, making them more susceptible to scams.

How to Protect Yourself From Scammers

The best way to protect yourself is to remain vigilant when signing your closing documents and transferring funds. This might include the following:

• Never rely on email for wiring instructions. Scammers can spoof email addresses to look legitimate.
• Verify wiring instructions directly with the recipient. Call the title company or lender using a phone number you know is correct (not one provided in an email). This is the best protection!
• Double and triple-check account details. This includes the name on the account, the account number, and the routing number. If something doesn’t match up, it warrants further investigation.
• Beware of last-minute changes. If wiring instructions change close to closing, be extra cautious and verify them thoroughly. This might be a legitimate adjustment, or a red flag indicating a fraud attempt.
• Consider using a cashier’s check instead of a wire transfer. Discuss this option with your real estate agent or attorney, if it’s a concern for you.
• Read the CFPB’s guide to avoiding mortgage and closing scams.

Is There Something We Missed?

At the Home Buying Institute, we take consumer education seriously. We want you to be as well-informed as possible as you navigate your home buying journey.

So, how did we do? Did you find this guide helpful? Did it give you a better understanding of the documents you’ll sign during closing, and how to be successful throughout this process?

If there’s something that could make this guide better, please let us know.

Disclaimer: This article serves as a checklist of closing documents home buyers typically sign when they close. But this list is not exhaustive. Depending on the type of loan you use and other factors, you could encounter additional documents that are not covered above.