Short answer:
– The buyer usually signs first, especially if a mortgage is involved.
– Once all financing documents are complete, they are signed by the seller after the buyer.
– Signing orders help ensure a smooth and compliant closing and prevent delays and financing issues.
Who signs first at closing? This is a common question for home buyers and sellers, and knowing the answer will help you approach closing day prepared and confident.
In most cases, the buyer signs first. This is because the lender will need to complete the financing documents before the seller can complete that part to ensure the transaction goes smoothly.
Whether you’re closing on a home in Austin, Texas, Boise, Idaho, or Sacramento, California, this Redfin guide will explain who signs first at closing, why that order is important, and how it affects the final steps of your home purchase.
Who signs first at closing: buyer or seller? Understand the complete timeline
Step 1: Buyer signs loan documents
Before the seller signs, the buyer must review and sign several important loan documents to finalize the loan, including:
Promissory Note: A written promise to repay a loan, including the amount, interest rate, and payment terms. Mortgage or Deed of Trust: Secures the lender’s interest in a property and allows foreclosure if the loan is not repaid. Loan Disclosure: A document that outlines the principal terms, charges, and risks of a loan. Settlement Statement: A breakdown of all closing costs and the final amount due at closing.
Once these documents are completed, the lender will perform a final review before releasing the funds.
Step 2: Seller signs transfer documents
Once the buyer’s documents are in place, the seller signs the following:
Deed: A legal document that transfers ownership of real estate from the seller to the buyer. Title Document: A document that confirms the seller’s right to sell real property and outlines any liens or restrictions. Final Settlement Statement: A detailed summary of all closing costs and how funds will be distributed between buyer and seller. Affidavits and disclosures required by state or local law: Statements verifying property details or legal obligations, such as occupancy, condition, and compliance with local regulations.
Step 3: Closing agent completes the transaction
The closing agent or attorney will:
Signature Verification: The closing agent will verify that all documents are correctly and legally signed. Confirm release of funds: Confirm that the buyer’s lender or bank has transferred the necessary funds to complete the transaction. Record the contract with the county: Officially record the property transfer in public records. Distribute final documents to both parties: Provide copies of all completed closing documents to the buyer and seller for their records.
>> Read: The ultimate guide to closing documents
Why does the buyer usually sign first?
The buyer typically signs first, as the lender must review and finalize the loan documents before the deal can proceed. Once the buyer signs, the lender can approve the financing, giving the seller the confidence to complete their part of the closing.
Loan funding process facilitates signature orders
If a mortgage is involved, the lender will provide a detailed loan package that must be signed by the buyer before funds can be released. This ensures that:
The lender has verified the buyer’s information. All required disclosures have been reviewed and approved. Funds can be provided without delay.
Only after the buyer’s loan documents have been fully executed can the seller sign the deed assignment and closing documents.
Cash buyers can also sign first
Even in all-cash transactions, the buyer often signs first so the closing agent can see the funds before the property legally changes hands. These closings will be faster, but maintaining the same signing order will prevent last-minute issues.
Does it matter who signs first?
Yes, a signing order protects both parties and ensures that the transaction complies with lender, legal, and title requirements.
Benefits of Buyer Priority Signing
Ensure financing conditions are met before ownership is transferred. Minimize the risk of financing issues. Prevents the seller from signing prematurely.
Benefits of being the second seller to sign
Ensures certificates are transferred only when funds are verified Avoids unnecessary delays in the event of buyer-side issues Maintains a nationally recognized orderly closing sequence
Can the buyer and seller sign on different days?
In many markets, yes. Some states require all parties to sign on the same day, while others allow split closings. This flexibility often helps accommodate work schedules, remote closings, or lender schedules. In any case, the buyer usually signs before the seller.
Tips for a smooth signing experience
Preparing ahead of time can make closing day faster, easier, and a lot less stressful. Whether you’re a buyer or seller, these tips will help the signing process go smoothly from start to finish.
1. Check financial disclosure information early
Buyers should carefully review the closing disclosure at least three days before closing. This gives you time to review the loan terms, check for errors, and ask questions of your lender before the closing date, which can prevent last-minute delays.
2. Please bring a valid government-issued ID.
The closing agent will need to verify your identity, so please bring a current driver’s license, passport, or state ID. Signing may be delayed if your ID has expired or is missing.
3. Check final numbers and wiring instructions
To avoid fraud, double-check wiring instructions directly with your contracting agent or title company, not just by email. Also, check the amount due at closing and make sure you have the funds ready to transfer.
4. Ask questions in advance
If you have any questions about your loan package or settlement documents, please contact your lender or agent prior to booking. Arriving confidently will make your signature shorter and smoother.
5. Complete the final walkthrough early
Buyers should conduct a final walk-through at least several hours before closing. This allows time to address any issues that may affect the signing or release of funds.
6. Arrive on time and maintain a steady pace
Buyer signing takes time due to loan paperwork, but sellers usually get it done quickly. Arriving early will keep your day on track and avoid bottlenecks in closing schedules.
Understand buyer and seller signature orders
Understanding whether the buyer or seller signs first at closing allows both parties to know what to expect on closing day, ensuring a more confident and stress-free experience. Whether you’re buying or selling, signature orders play a critical role in keeping transactions smooth and secure, and ensuring a smooth handover of keys and ownership.
FAQ: Who signs first at closing? The buyer or the seller?
1. Do both the buyer and seller need to be present at the closing, or can one party sign remotely?
Many closings allow for remote or hybrid signing using notarized electronic documents. What is allowed depends on your closing agent and state regulations.
2. How long does a buyer’s signature typically take compared to a seller’s signature?
Loan documentation may take 45 to 90 minutes for buyer to sign. Sellers have far less paperwork to sign and it typically takes 15 to 30 minutes.
3. If the buyer doesn’t sign first, can the closing be delayed?
yes. If the buyer does not complete the loan documents, the lender cannot release the funds and the seller cannot lock in his share.
4. What if there is a problem with the buyer’s loan documents during signing?
Closing may be paused while the lender corrects the documents. This is one of the reasons buyers sign first so that any issues don’t affect the seller’s timeline.
5. Can the title company or attorney change the signing order?
In rare cases, such as in commercial real estate or complex transactions, the order may change. However, a standard home closing almost always follows a buyer-first process.
