Quick Answer:
– Typically, the buyer signs first, especially in mortgage loan transactions.
– The seller signs after the buyer, once all loan documents are finalized.
– Following this signing order ensures a smooth closing process and avoids delays or funding issues.
Who signs first at closing – the buyer or seller? This is a common question among homebuyers and sellers, and understanding the sequence of signing can help you be better prepared and confident on the closing day.
In most cases, the buyer signs first because their lender needs to finalize the loan documents before the seller can proceed with their part of the process, ensuring a seamless transaction.
Whether you are closing a home in Austin, TX, Boise, ID, or Sacramento, CA, this guide will walk you through the signing order at closing, its importance, and how it impacts the final steps of your home purchase.
Who signs first at closing — the buyer or seller? Understanding the full timeline
Step 1: Buyer signs loan documents
Before the seller signs, the buyer must review and sign several crucial loan documents, including:
- The promissory note: This document outlines the buyer’s promise to repay the loan according to specified terms.
- The mortgage or deed of trust: This secures the lender’s interest in the property and allows for foreclosure in case of non-payment.
- Loan disclosures: Important documents detailing the terms, fees, and risks associated with the loan.
- Settlement statements: A breakdown of all closing costs and the final amount due at closing.
Once these documents are signed, the lender conducts a final review before releasing the funds.
Step 2: Seller signs transfer documents
After the buyer’s paperwork is in order, the seller signs:
- The deed: The legal document transferring ownership of the property from the seller to the buyer.
- Title-related documents: Papers confirming the seller’s right to sell the property and any liens or restrictions.
- Final settlement statements: A detailed summary of all closing costs and fund distribution.
- Affidavits and disclosures required by law: Statements verifying property details or legal obligations.
Step 3: The closing agent completes the transaction
The closing agent or attorney will:
- Verify signatures: Ensuring all documents are correctly and legally signed.
- Confirm fund release: Making sure the necessary funds have been sent for the transaction.
- Record the deed: Officially documenting the property transfer in public records.
- Distribute final documents: Providing copies of all closing paperwork to both parties.
>> Read: The Ultimate Guide to Closing Documents
Why does the buyer usually sign first?
The buyer typically signs first because their lender needs to review and finalize the loan documents before the transaction can proceed. Once the buyer signs, the lender can approve funding, enabling the seller to complete their part of the closing confidently.
The loan funding process drives the signing order
When a mortgage is involved, the lender provides a detailed loan package that the buyer must sign before funds are released. This process ensures:
- The buyer’s information has been verified.
- All required disclosures have been acknowledged.
- Funding can be delivered without delays.
Only after the buyer’s loan documents are fully executed can the seller sign off on the deed transfer and closing paperwork.
Cash buyers may still sign first
Even in all-cash transactions, the buyer often signs first to allow the closing agent to confirm funds before the property transfer. This maintains consistency and helps prevent last-minute issues.
Does it matter who signs first?
Yes, the signing order protects both parties and ensures compliance with lender, legal, and title requirements.
Benefits of buyer-first signing
- Ensures loan conditions are met before ownership transfer.
- Minimizes funding risks.
- Prevents premature seller signing.
Benefits of seller signing second
- Ensures deed transfer only after funds are verified.
- Avoids delays due to buyer-side issues.
- Maintains a recognized closing sequence.
Can the buyer and seller sign on different days?
In many markets, yes. While some states require all parties to sign on the same day, flexibility allows for split closings. This flexibility accommodates work schedules, remote closings, or lender timelines, although the buyer typically signs first.
Tips for a smooth signing experience
Preparation can make closing days faster, easier, and less stressful. Whether you are the buyer or seller, follow these tips to ensure a smooth signing process:
1. Review your closing disclosure early
Buyers should carefully review their Closing Disclosure at least three days before closing to confirm loan terms, check for errors, and address any questions with the lender before signing day.
2. Bring a valid government-issued ID
Ensure you have a current driver’s license, passport, or state ID to verify your identity during the closing. An expired or missing ID could delay the signing.
3. Confirm final figures and wire instructions
Double-check wiring instructions with the closing agent or title company to avoid fraud. Verify the amount due at closing and ensure funds are ready for transfer.
4. Ask questions ahead of time
If anything in your loan package or settlement documents is unclear, contact your lender or agent before the appointment to clarify. Being informed can make the signing process smoother.
5. Complete your final walkthrough early
Conduct the final walkthrough a few hours before closing to address any issues that may impact the signing or fund release.
6. Arrive on time and expect a set pace
Buyer signings take longer due to loan paperwork, while sellers typically finish quickly. Arriving on time helps keep the closing schedule on track and avoids delays.
Understanding buyer vs. seller signing order
Understanding who signs first at closing, whether the buyer or seller, helps both parties prepare for the closing day and ensures a confident, stress-free experience. The signing order is crucial for a smooth and successful property transfer.
FAQs: Who signs first at closing? The buyer or seller?
1. Do both the buyer and seller need to be present at closing, or can one party sign remotely?
Many closings allow remote or hybrid signings using notarized electronic documents, depending on state regulations and the closing agent’s discretion.
2. How long does the buyer’s signing typically take compared to the seller’s?
The buyer’s signing process can take 45–90 minutes due to the loan documentation, while the seller usually completes their signing in 15–30 minutes.
3. Can closing be delayed if the buyer doesn’t sign first?
Yes, if the buyer doesn’t complete the loan documents, the lender cannot release funds, delaying the closing process for both parties.
4. What happens if there’s an issue with the buyer’s loan documents during signing?
If there’s an issue with the buyer’s loan documents, the closing may pause while the lender resolves the problem to ensure a smooth transaction.
5. Do title companies or attorneys ever change the signing order?
In rare cases, such as complex transactions, the signing order may change. However, for standard residential closings, the buyer typically signs first to maintain consistency.