What to Expect at Closing in Indiana: A Walkthrough

Closing day is the final step in buying a home. If you have never been through it before, the process can feel intimidating. Here is a walkthrough of what to expect at a closing in Indiana, specifically for buyers in South Bend, Mishawaka, and across Michiana.

Before closing day

A few days before closing, your lender will send you the Closing Disclosure, which details your loan terms, monthly payment, and the exact amount of cash you need to bring. Review it carefully and compare it to your Loan Estimate. Ask your lender about any discrepancies.

You will also do a final walk-through of the property, usually within 24 hours of closing, to verify the home is in the agreed-upon condition and any negotiated repairs are complete.

What to bring to closing

• A valid government-issued photo ID (driver's license or passport)
• Your Social Security number
• Proof of homeowners insurance
• A cashier's check or wire transfer for your closing costs and down payment (the exact amount will be on your Closing Disclosure)
• Any additional documents your lender or title company requested

Where does closing happen?

In Indiana, closings are typically held at a title company's office. The title company acts as the closing agent, handling the document signing, fund disbursement, and recording of the deed. Some closings can also be done remotely with a mobile notary.

Who is at the closing table?

• You (the buyer)
• The closing agent (from the title company)
• Your real estate agent (me)
• The seller's agent (sometimes)
• The seller (sometimes - in Indiana, buyers and sellers often sign separately)

What happens during closing

The closing typically takes 45 minutes to an hour. Here is the sequence:

• Review the Closing Disclosure - The closing agent walks you through the final numbers
• Sign the mortgage documents - This is the largest stack, including the promissory note, mortgage, and lender disclosures
• Sign the title documents - Including the deed and title insurance paperwork
• Review and sign the settlement statement - This shows all credits and debits for both buyer and seller
• Provide funds - You hand over the cashier's check or confirm the wire transfer
• Receive your keys - Once everything is signed and funds are confirmed, you get the keys to your new home

After closing

The closing agent will record the deed with the county recorder's office, which makes your ownership official. You will receive your recorded deed in the mail a few weeks later. Your first mortgage payment will typically be due the first of the month after your first full month in the home.

Indiana-specific notes

• Indiana does not have a state transfer tax, which is one cost you do not have to worry about
• Indiana collects property taxes in arrears, so property tax prorations are handled at closing
• Title insurance practices vary, but in many northern Indiana transactions, the seller pays for the owner's title policy

Michigan closings

If you are buying in Michigan, the process is similar but there are some differences. Michigan charges a state transfer tax of $8.60 per $1,000 of sale price, and title fee allocation is more negotiable. As an agent licensed in both states, I can guide you through either process.

Want to know exactly what your closing costs will be? Use the closing cost estimator or call or text Worm at 574-240-WORM.