What happens during the closing process of a mortgage?

During the closing process of a mortgage, the ownership of the property is officially transferred from the seller to the buyer. This is a crucial step in the real estate transaction, as it signifies that the buyer has fulfilled mortgage requirements, including securing financing and satisfying any other conditions agreed upon in the purchase contract.

The closing involves various activities, such as reviewing and finalizing documents, paying closing costs, and recording the transaction with the appropriate government entity, usually a county recorder. This step is essential because it provides legal recognition and protection of the buyer's rights to the property.

While activities like refinancing, appraisals, and credit checks are significant parts of the mortgage process, they typically occur before the closing phase. Refinancing relates to replacing an existing loan with a new one under different terms, appraisals assess the property’s value, and credit checks are conducted to evaluate the borrower's financial reliability prior to closing.