What Happens at Closing Day — Pennsylvania Mortgage Guide for First-Time Buyers

Closing day is the finish line — but if you have never done it before, it can feel like walking into an exam you did not study for. Stacks of documents, unfamiliar legal terms, a wire transfer larger than anything you have ever sent. Understanding what actually happens, and what to expect from each step, takes most of the anxiety out of the room.

Here is a plain-language walkthrough of closing day in Pennsylvania.

Who Is at the Closing Table and What They Do

Pennsylvania uses a title company or real estate attorney to conduct closings — not the lender directly. Here is who typically shows up:

• The buyer (you) — and your co-borrower if you have one
• The seller — though in many cases the buyer and seller sign at separate times
• The title company representative or settlement agent — they run the meeting, explain each document, and collect signatures
• Your real estate agent — present in most transactions but not required
• The seller’s agent — often present on their side
• Your lender — Dynamic Funding Solutions is usually not physically at the table, but we have prepared every document and are reachable by phone throughout

The title company handles the mechanics: confirming the title is clear, disbursing funds to the seller, recording the deed with the county, and issuing title insurance.

What Documents You Are Signing

Closing involves a significant stack of paperwork. The major documents are:

The Promissory Note — Your legal promise to repay the loan. It specifies the loan amount, interest rate, payment schedule, and consequences of default.

The Mortgage (or Deed of Trust) — This is separate from the Note. It is recorded with the county and gives the lender a security interest in the property. If you stop paying, this document is what allows foreclosure proceedings.

The Deed — Transfers legal ownership of the property from the seller to you. The title company records this with the county recorder of deeds.

The Closing Disclosure — You received this at least three business days before closing. It shows the final loan terms, interest rate, monthly payment, and complete breakdown of all fees and credits. Review it carefully before you arrive; flag any discrepancies immediately.

Right to Cancel (refinances only) — On a purchase transaction you do not have a right of rescission. On a refinance of your primary residence, you have three business days to cancel after signing.

What to Bring to Closing

• Government-issued photo ID — driver’s license or passport for every borrower
• Certified funds or wire confirmation — your cash to close amount must arrive as a cashier’s check or confirmed wire. Personal checks are not accepted for closing funds.
• Proof of homeowner’s insurance — your binder showing the new policy is active, with Dynamic Funding Solutions listed as mortgagee
• Any outstanding items your lender requested — if there were conditions still open, closing may be delayed until they clear

Closing Costs — What You Are Paying and Why

Pennsylvania buyers typically pay between 2% and 5% of the loan amount in closing costs. These fall into a few categories:

Lender fees — origination, underwriting, points if you bought down the rate

Third-party fees — appraisal, title search, title insurance (owner’s and lender’s), survey if required, attorney fees

Prepaid items — homeowner’s insurance premium, prepaid interest from closing date to end of month, initial escrow deposit for taxes and insurance

Government fees — recording fees, Pennsylvania deed transfer tax (2% of purchase price, split between buyer and seller by custom, though negotiable)

The Wire Fraud Warning — Read This

Wire fraud targeting homebuyers is real and growing. Criminals intercept email communications and send fake wiring instructions that look legitimate. Before you wire any money, call your title company directly using a phone number you looked up independently — not one from an email. Verify the account and routing numbers verbally. Never wire based solely on emailed instructions, no matter how official they look.

What DFS Does to Prepare You

First-time homebuyers often tell us closing felt much calmer than they expected. That is because we walk every client through the Closing Disclosure before the day arrives, flag any numbers that changed from the Loan Estimate, and confirm their cash-to-close figure early enough to avoid last-minute scrambles. If you received PHFA grant funds as part of your transaction, we coordinate the disbursement timeline with the title company so there are no delays at the table.

Questions? Call Lena Polnet at (215) 364-7171 or visit dynamicfunding.net. Dynamic Funding Solutions, Inc. — NMLS #17144 | Lena Polnet — NMLS #17225 | Licensed in Pennsylvania and Florida