At a mortgage closing, the borrower is the party who closes on the loan commitment. Your signatures on the promissory note and the security instrument (a mortgage or deed of trust, depending on your state) activate the lender’s commitment and turn it into a funded loan. A closing agent — called a settlement agent, escrow officer, or closing attorney depending on where you live — runs the meeting, verifies identities, notarizes signatures, and coordinates the paperwork, but the agent does not close the loan. You do.
The seller also signs at closing, but the seller’s signatures transfer the property, not the loan. The lender’s commitment is a promise to lend to you, and only your execution of the loan documents accepts that promise and creates the debt.
Who Is at the Closing Table
A typical closing brings together the borrower, the seller, the closing agent, and often the real estate agents for both sides. The borrower is the central participant because the loan commitment stays inactive until the borrower signs. The seller attends to sign the deed transferring ownership and to receive sale proceeds.
Who runs the meeting depends on your state. Roughly a dozen states require or strongly expect an attorney to conduct the closing. Most other states allow a title company representative or escrow officer to handle it. In attorney-closing states, a lawyer reviews documents and oversees the transaction for compliance with state law. In escrow or title-company states, a licensed title or escrow agent performs the same coordinating role. Whichever setup applies, the closing agent works as a neutral third party carrying out the lender’s written closing instructions.
A representative from the lender does not usually attend in person. The lender sends the loan package to the closing agent with detailed instructions, and the agent makes sure those instructions are followed before releasing funds.
The Documents That Actually Close the Commitment
You sign a stack of paperwork at closing, but two documents carry the legal weight that closes the loan commitment.
- Promissory note. Your personal promise to repay the loan. It states the interest rate, monthly payment, repayment schedule, late-payment penalties, and what counts as a default. Signing the note makes you personally liable for the debt.
- Deed of trust or mortgage. This pledges the property as collateral. By signing it, you give the lender the right to foreclose if you fail to make payments on the terms of the note. Some states use a deed of trust and others use a mortgage, but the practical effect is the same: the property secures the loan.1Consumer Financial Protection Bureau. Deed of Trust / Mortgage Explainer
You will also sign the deed transferring ownership from the seller to you, an initial escrow statement if your loan includes an escrow account, and lender-required affidavits and disclosures. Before signing anything, check that your name is spelled correctly on every document and that the property’s legal description matches the property you are buying. Errors in either can cause title problems later.
What the Closing Agent Does
The closing agent manages the mechanics of the meeting. Before any documents are signed, the agent checks government-issued identification for every signer to confirm identities. As you work through the loan package, the agent explains each document’s purpose, directs you where to sign, and notarizes signatures that require it. Notarization certifies that the person signing is who they claim to be and that they signed voluntarily.
The agent also confirms that no required fields are left blank, that dates and figures are consistent across documents, and that the lender’s closing instructions have been followed precisely. Once all signatures and notary seals are in place, the agent assembles the completed package for submission to the lender’s post-closing department.
In more than 40 states and the District of Columbia, remote online notarization is now permitted for real estate transactions, so you may be able to sign your closing documents over a secure video call with a commissioned notary rather than in person. Availability and specific requirements vary by state, so confirm with your closing agent whether it is an option for your transaction.
When the Loan Is Actually Closed
Signing is not quite the finish line. After the signing is complete, the closing agent submits the loan package to the lender for a final compliance review. Once the lender approves everything, it wires the loan proceeds to the closing agent’s escrow account. The agent then distributes the funds, paying the seller, covering real estate commissions, and settling other charges listed on the Closing Disclosure.
How quickly this happens depends on whether you are in a wet-funding or dry-funding state. In wet-funding states, all paperwork must be complete and funds disbursed on the same day you sign, or within a day or two. In dry-funding states, you sign at the closing table but the loan does not officially fund until the lender reviews and approves the full package, which can take several additional business days. During that gap, the seller does not receive proceeds and you do not yet hold title.
Once funds are disbursed, the closing agent sends the signed deed and security instrument to the county recorder’s office for public recording. Recording does two things at once: it establishes you as the legal owner in the public record, and it establishes the lender’s lien priority against the property. Recording fees vary widely by county and generally depend on the number of pages and the property’s value.
If You Cannot Close Before the Commitment Expires
A mortgage loan commitment has an expiration date. Commitment periods vary but can range from 30 to 90 days.2Fannie Mae. Mandatory Commitment Terms, Amounts, Periods and Other Requirements If your closing is delayed beyond that window, you may need to request an extension from the lender. Extension fees vary but can run 0.25% to 0.50% of the loan amount, and letting the commitment expire without an extension means your locked interest rate is no longer guaranteed. You could end up with a higher rate if market rates have risen.
Failing to close can also affect your earnest money deposit. Most purchase contracts include a financing contingency that protects your deposit if you genuinely cannot obtain a mortgage. Once the lender issues a commitment and any financing-contingency deadline passes, walking away from the deal typically means forfeiting your earnest money to the seller. The specific terms depend on your purchase contract, so review the contingency deadlines with your real estate agent or attorney before the commitment period expires.
The Short Answer
You close the mortgage loan commitment. The closing agent runs the meeting and the lender funds the loan, but the commitment becomes a binding, funded mortgage the moment you sign the promissory note and the security instrument. Everyone else at the table supports that step.