What happens at a home closing in Virginia?

What happens in the days before closing?

Closing is the end of a process that has been moving for weeks. Your lender issues a Closing Disclosure that lays out your loan terms and the cash you need to bring, and federal rules require you to receive it before closing, so you have time to compare it against your earlier estimate. Read it line by line. If a number does not match what you expected, ask your lender or settlement company that day, not at the table.

You also send your funds, normally by wire, to the settlement company. Wire fraud is a real risk in real estate. Confirm the wiring instructions by calling a phone number you already know, never one from an email. Your agent and the title company will tell you the same.

In the same window you do a final walkthrough, covered below, and you set up utilities, insurance and any moving arrangements. Homeowners insurance must be in place before closing because your lender will require proof.

What is the final walkthrough, and what should I look for?

The final walkthrough is your last look at the house, usually a day or two before closing. You are checking that the home is in the condition you contracted for, that repairs the seller agreed to were done, and that included items such as appliances and window treatments are still there. Run the water, turn on the heat or air, flip the switches and open and close the doors.

It is not a second inspection and it is not the time to renegotiate. If something is wrong, tell your agent right away so it can be fixed or resolved in writing before settlement. Our post on what happens at a home inspection explains what you should already know about the house by this point.

What actually happens at the settlement table?

Settlement is run by a title or settlement company and is conducted under the supervision of a Virginia attorney, as Virginia requires. You show photo ID, review the final numbers and sign. For a purchase with a loan you sign the promissory note, the deed of trust that secures the loan, and the lender’s disclosures, and acknowledge the Closing Disclosure. The seller signs the deed. Many closings take around an hour, although a large stack of documents can feel longer.

Some buyers sign at the office, some sign with a mobile notary at home, and in some cases documents can be signed electronically. Ask your settlement company which options your lender allows.

Your agent usually attends and can answer questions, but the settlement company, not your agent, runs the signing. If you want a specific lawyer to review documents, tell your agent early. This is general information, not legal advice.

When do I get the keys?

After signing, the settlement company confirms the lender has funded and the funds are in hand. Then the deed and deed of trust are recorded in the circuit court clerk’s office for the locality, which is how ownership becomes part of the public record. In most cases the keys are released the same day once those steps are complete. The contract sets possession terms, so some deals provide for possession at settlement and others at a later date.

If you are also selling, the order matters. Ask your agent and your settlement company well ahead of time how the two closings will be timed and when you can expect proceeds. Our FAQ on buying and selling at the same time covers the usual choices.

What costs show up at closing?

Your Closing Disclosure itemizes everything, and it helps to know the categories before you see them. Lender charges for originating the loan. Title and settlement charges, including title insurance and the settlement company’s fees. Recording costs paid to the locality. Prepaid items such as homeowners insurance and the first stretch of property tax, and often an escrow cushion if your lender collects taxes and insurance with your payment. In Virginia, the grantor’s tax on the deed is a seller cost, and you can read how it works in our FAQ.

The total depends on your loan, your lender and the price, so I will not guess at a figure for your purchase. Ask your lender for a Loan Estimate early, compare it with the Closing Disclosure when it arrives, and ask what changed and why. Small differences are normal. Large ones deserve a phone call that day.

Where I see people get this wrong

In fourteen years selling in the Richmond area, the most common closing-day problem is not a legal one. It is a timing and communication problem. I had a buyer whose closing was delayed because an insurance binder had not been sent to the lender. Nobody had done anything wrong. Nobody had checked. The fix took a day, but the movers had been booked, the seller had a closing of their own that same afternoon, and everyone was stressed.

What I tell my own clients: I do a short checklist call three days before settlement. We confirm the Closing Disclosure has been reviewed, the funds are wired, insurance is bound, utilities are scheduled, and the walkthrough is set. Most closing problems are visible three days out and almost none are visible at the table.

What should I do next?

If you are buying and want a closing without surprises, start with an agent who tracks every date on the way there. Read how we work with buyers, contact us, or meet Daniel Keeton. Our Glen Allen office closes homes across the Richmond area, and the Richmond market page shows what is happening locally.