The closing process really starts when you have a signed purchase and sale agreement. That agreement usually specifies a closing date when the deal will be finished. Expect it to take four to six weeks. This is the time period people mean when they say they are “in escrow.” During that time you’ll be collecting boxes, maybe having a garage sale and starting the fun of packing your stuff while an intricate series of events begins with your real estate agent, the title company and/or real estate attorney, and your lender working to pull it off by the agreed-upon date.

Here’s what’s going on behind the scenes during those weeks:

 

• The closing agent, either a representative from the title company or an attorney, is crunching the numbers, talking with the seller’s current mortgage holder to get loan payoff amounts, getting instructions from your lender, prorating the property taxes and preparing instructions for you and the seller.

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• The title company or a real estate attorney is researching the ownership of the property making sure the seller has the right to sell you the home and you don’t have any surprise liens or disputes.
   

• The lender is hiring an appraiser, preparing your loan documents and sending them to the escrow company.
   

• The real estate agents are bird-dogging it all, making sure everyone and everything is moving forward.

Meanwhile, you’ve got some tasks as well during this period:

 

• Complete your loan application and provide documentation your lender requires.

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• Line up your homeowner insurance policy.
   

• Call utilities to get service set up in your name as of the closing date.

Your contract may call for a final walk-through of the home within 24 hours of closing. If this is the case, your agent should go with you and help mitigate anything that’s not right. Problems at this point could delay closing or mean having the escrow agent hold back money due the seller until repairs are made