Closing documents are papers that the buyer, seller or both must sign before a home gets its new owner. They include everything from your loan terms to proof that the home is officially yours.

While lawyers and lenders understand closing documents with no problems, it’s like reading a new language for most home buyers. Let's break them down so your closing day goes smoothly.

Proof of homeowners insurance

While a lot of closing documents will come from your lender or attorney, homeowners insurance is your responsibility. It’s your first line of defense against damages from kitchen fires, category 4 hurricanes, would-be burglars and other mishaps.

Without proof of homeowners insurance, closing can't proceed, so here’s how to make sure you don’t have any insurance delays:

• Stay in touch with your provider: Get in touch with your insurance provider a few days before closing and make sure they have all the home’s details correct. If you don’t have a provider yet, give yourself enough time to shop around.
• Get proof of insurance: Ask your provider for an “insurance binder” or “certificate of insurance” which shows your policy number, coverage amounts and effective dates. Always make sure the lender's mortgagee clause is listed on the policy. A mortgagee clause is a part of your homeowners insurance policy that protects your lender—the mortgagee—from losses incurred due to damage to your property.
• Go over the document with a fine-tooth comb: Is it accurate? Does it meet your lender's requirements? For instance, some lenders may require flood insurance if you’re in a high-risk area. Get any errors fixed ASAP to keep your closing on track.

Loan application

Remember all that paperwork you filled out to get your loan? You'll see it again at closing. Double check it to make sure all your information is correct—even the tiniest error must be found and fixed.

If your salary or other financial details have changed since you first applied, call your lender right away so they can make any necessary updates. This document isn't just an “FYI”—it's a fresh copy of your initial loan application, so it needs to be buttoned up.

Loan estimate

In the long list of mortgage closing documents, this one’s like a snapshot of your entire mortgage commitment. It outlines your monthly mortgage payment, property appraisal, homeowners insurance, closing cost details and how your interest rate affects your payments.

You'll get this doc within three days of your lender receiving your mortgage application. This is super helpful because it gives you time to confirm everything looks right. If things change in the weeks leading up to closing—say, your interest rate goes up or down—your lender will update your estimate. This way, you’re always in the loop and can make informed decisions.

Mortgage or deed of trust

Depending on the state you’re buying in, this closing document will be called the mortgage or the deed of trust. It’s an agreement between you and a lender that gives the lender the right to take your property if you don’t repay the money you’ve borrowed plus interest. 

This is also the document that explains what happens if you experience a financial hiccup. Miss a payment? It spells out how and when your lender can step in. So, take your time with it and make sure everything checks out. Your future self will thank you.

Mortgage note

Like a car note, a mortgage note outlines the terms of your loan, including loan amount, interest rate and payment schedule. This document legally binds you to repay the loan, so read it carefully. Does something seem off? Reach out to your lender right away.

Initial escrow statement

When you buy a house, you don't just pay for the loan. You also pay for things like taxes and insurance. The escrow account is a special account where money for these costs is kept. The initial escrow statement breaks down exactly where that money will go. This includes:

• Property taxes: The portion of your payment allocated to annual property taxes. Note that your property taxes can shift from year to year, so this number may change over time.
• Homeowners insurance: The amount set aside each month for homeowners insurance.
• Mortgage insurance premiums: How much of your payment (if any) goes towards mortgage insurance, which protects your lender in case you default on payments.

Closing disclosure

This closing document showcases the financial details for your home loan and is the last closing document you’ll receive from your lender. They’re required to send it to you at least three business days before your scheduled closing date. Be sure to take that time to carefully review all the details before the big day.

The closing disclosure puts the loan terms in black and white, showing the exact figures you're committing to. This step isn't just a formality—it's your chance to verify your loan amount, interest rate, monthly payments and closing costs. It's more precise than earlier estimates, which should put you at ease. If something doesn't add up, flag it for corrections. Sure, this could delay closing, but it's better to be safe now than sorry later.

Transfer of tax declarations

This document ensures property taxes are all squared away before the seller hands over the property. As for house closing documents, this one really brings peace of mind. It helps protect you from inheriting someone else's tax burdens so you can move into your new home with a clean tax slate. Phew!

Certificate of occupancy

Your certificate of occupancy (a.k.a. the “CO”) confirms your home is safe and ready for move-in. It's an important seal of approval, especially for new homes, as it verifies that construction is up to code. Generally provided by the builder, it also includes the property’s address and a detailed description.

If you’re buying a preowned home, you (or your attorney) can ask the seller for this certificate. If you’re buying an older home, you can get an equivalent document from your local authority.

Title documents

These are the documents that say you legally own the property. They confirm everything about your home's history and that ownership is legitimate. Title documents include the deed (more on that below) and the title insurance commitment, which helps protect you from any of the seller’s old debts or legal entanglements, such as tax liens.

These documents can help shield you from financial headaches down the road, so make sure to check them carefully.

Deed

Experiencing closing document overload? Well, hold tight for the very best part—the deed. This golden ticket is what officially transfers the title of the property from the seller’s name to yours. The seller signs it, it gets notarized, and ta-da! You’re the official, legal homeowner.

Once everything is given the all-clear, the deed is yours to keep. It’s then recorded at the county office as a public document, so anyone who looks up your property will see you’re the owner.

Now, you may be wondering how to acquire a copy of your closing documents. You should receive a packet at closing, but if you don’t or if you want extra copies, your real estate agent can help. You can get public records, like the deed, from your county recorder’s office or a title company.

Congrats––you’ve navigated the maze of closing documents and learned a lot along the way. Now, you can close the door on closing and get to the fun part. Welcome home!