A home closing is the exciting final step in the process of buying a new home.  After all the house hunting and negotiations, the home closing seals the deal -- legally.

Closing -- also known as "settlement" or "escrow" -- is the process of transferring the title of a home from the seller to the buyer.  It's also the point in time when you'll officially commit to a mortgage to pay for your new home.

Since a home closing is a legal proceeding, the process involves certain procedures and legal documents that you may not be familiar with.  But the process of closing on a new home isn't rocket science.  This guide will give you a breakdown of the steps involved in a home closing and let you know what to expect when the big day finally rolls around.

Before the closing
Once you make an offer that the seller accepts, the countdown to a home closing begins.  To make your offer official, you'll sign a contract on your new home and you may also be required to make a deposit of earnest money.  Earnest money is a good faith deposit showing that you are serious about buying the house.  If for some reason you decide not to close, the seller will keep your earnest money.  But if you go forward as planned, that earnest money is applied towards the purchase of your new home.

Most contracts come with contingencies, requirements made of either the seller, the buyer, or both parties that must be met before closing can proceed.  Typical contingencies include a home inspection, the buyer's securing of financing, and an agreement to make repairs on the property.

Your real estate agent will set a closing date after the contingencies are settled.  He or she will coordinate with you, the seller, your mortgage lender, and the closing agent to find a date that works for everyone and provides enough time to prepare documents for the closing.

After the home closing date is set, you can sit back and relax.  While you should still pay close attention to the proceedings, most of the work will now be done by a settlement agent (usually a lawyer) who is in charge of holding the deposit money, making sure the seller is legally able to sell you the home, and compiling a document that lists all closing costs.  Your settlement agent will keep you informed of all the important details.

Home closing day
When home closing day finally rolls around, most of the work involved in buying a new home will be done.  When you arrive at your actual closing, you'll simply be required to sign a number of legal documents pertaining to both the purchase of your new home and the mortgage you agree to pay the lender. Bring picture I.D. to closing because you'll need to have these documents notarized.  You'll also have to pony up any closing costs that you owe in the form of a certified check.  Once all the paperwork is done, the title to your new home will officially be transferred to you.  And, best of all, you'll get the keys to your new place.