What to expect at closing: Step-by-step for Chicago homebuyers

Closing day is the final step in your homebuying journey and one of the most exciting.  Here’s what to expect, from getting "clear to close" to receiving your keys.

Step 1: Get “Clear to Close”

“Clear to close” means your mortgage is fully approved. The lender has reviewed every document, including your income, assets, credit, and the home’s appraisal. All conditions are met. You’re ready to sign the final paperwork and receive your loan.

At this stage, NewCastle Home Loans issues a mortgage commitment, a written agreement that confirms your approval and outlines the loan terms. It’s our official promise to fund your loan, assuming nothing major changes before closing.

Step 2: Review your Closing Disclosure

The Closing Disclosure (CD) is a five-page document outlining the final details of your mortgage. You’ll receive it at least three business days before closing. It shows your loan amount, interest rate, monthly payment, closing costs, and estimated cash to close.

• Your loan amount
• Interest rate and monthly payment
• Itemized closing costs
• Your estimated cash to close

This document gives you time to review everything and compare it to your Loan Estimate. If you have questions, we’ll explain it line by line.

Step 3: Watch for changes before closing

Yes,  your numbers can still change after receiving the CD. That’s because your lender and the title company are finalizing the figures behind the scenes, or you’ve made some last-minute changes that affect the loan. 

Why changes happen:

• A change in circumstances, such as a job switch, down payment adjustment, or opening a new undisclosed debt, may result in a change to the interest rate or loan costs.
• Final balancing with the title company, as prorated taxes, HOA dues, or credits are finalized.
  

Step 4: Know your “cash to close” amount

Your cash to close is the total amount you need for closing. It includes:

• Down payment
• Closing costs
• Earnest money deposit
• Seller credits (like prorated taxes or seller-paid closing costs)

Where do you get your bottom-line number?

You receive your final cash-to-close number from your lender and attorney, typically one to two days before closing.

Here's a summary of how the process works: 

1. At least three business days before closing, your lender will send you a preliminary Closing Disclosure (CD), which is an estimate of your closing costs. This version gives you a rough idea, but the numbers aren't final yet.
   
   
2. Behind the scenes, the title company works with your lender and the seller’s attorney to finalize the figures. The title company is the neutral third party that handles the legal and financial side of your home purchase.
   
   
3. Once everything is balanced, the title company issues the final CD.  Your lender and your real estate attorney will receive this updated version, which includes your official bottom-line number —  the exact amount you need to bring to closing. 

Your lender will provide that final figure to you. Before wiring any funds, confirm the amount with your attorney to ensure accuracy.

Step 5: Send your funds to the title company

You have two options when sending your funds to the title company.

1. Wire transfer:  Required if over $50,000 (Illinois rule)
2. Cashier’s check:  Accepted for smaller amounts

Important: Always get wiring instructions directly from the title company by phone. Never trust wire info sent by email alone.

You can set up a wire by:

• Log in to your bank’s website.
• Call your bank.
• Visit your local branch.

Tip: Send a little extra—just in case.

If there’s a last-minute change and you’re short, the title company won’t accept a personal check. You’ll have to leave closing, go to the bank, and get a new cashier’s check.

Avoid the stress—add an extra $1,000 if you can. The title company will refund any overage.

Step 6: Attend the closing appointment

Your closing will usually take place at the title company’s office. Bring your government-issued ID and your real estate attorney.

You’ll sign:

• The loan agreement
• The deed
• Additional loan documents

The title company will confirm receipt of your funds and NewCastle’s loan amount. Then they’ll disburse the funds,  meaning they send money to the seller, agents, and any other service providers.

Step 8: Receive the keys to your new home

Once the documents are signed and funds are disbursed, you’re officially a homeowner. The seller gives you the keys, and you can walk into your new place.

Whether you're buying a condo in River North or a two-flat in Logan Square, choosing a local lender like NewCastle Home Loans gives you an edge when buying a home in Chicago.

We often offer lower rates and fees than big banks and online lenders, helping you save money over the life of your loan.

Just as important, our local team knows the Chicago market and guides you every step of the way. From pre-approval to closing, we make the process fast, clear, and stress-free,  so buying your home feels exciting, not overwhelming.