It’s finally here — the day when you officially own your home. But, before you get to get to lay back on the couch and kick your feet up on the coffee table (yes, that’s all the furniture in your house right now), it’s time to sign those closing documents! Depending on where you live, there are a couple ways to get this done. If you’re moving to Ohio, you’ll be using an escrow account to hold your funds for a day or two while all the paperwork settles — don’t put your feet up quite yet! In other parts of the U.S., buyers and sellers get together at a round table meeting to finalize the deal.

So, what can you expect at escrow and round table closings?

Round Table Closing

Like the name suggests, round table closing involves a number of people meeting in-person to close the deal on your new home. This usually involves the buyer, seller, real estate agents, your title agent, and maybe an attorney or two coming together to transfer the home’s title to your name and sign mortgage documents, like a promissory note all on the same day.

Here’s what you can expect if you’re in a state that does round table:

1.     The buyer and seller will sign at the same time on the day of closing

2.     The buyer(s) deposits funds in the form of a check or money wire

3.     The lender attends the closing with the mortgage funds ready

4.     Both the buyer and seller have legal representatives

5.     The buyer gets the keys on the same day

6.     The seller receives the funds on the same day

While this type of closing can be difficult to coordinate, sellers have immediate access to their funds and buyers get their keys on the same day.

Escrow Closing

The word “escrow” means “to be managed by a third-party.” In a state like Ohio, this means that title duties and closing documents are transferred back and forth outside of a formal meeting, and the funds for your home are held by a third-party a few days while those documents are in transition.

While you may be missing out on a fun round table party, this process is typically much easier on the home buyer since there’s less to coordinate, especially if you’ve chosen the right title insurance agency.

If you’re moving to a state that uses escrow (like Ohio), here’s what you can expect. Keep in mind that most of this happens behind the scenes!

1.     The buyer and seller will sign at different times

2.     Signing usually one to three days prior to closing

3.     The buyer delivers their funds to escrow (a third party) in the form of a check or money wire one to three days prior to closing

4.     The lender will wire mortgage funds to the escrow company the day before or the morning of closing

5.     A Limited Practice Officer (LPO) will adjudicate the transfer of the title and transfer of funds for an escrow company or your title insurance company closing, and an attorney also oversees the transfer of the title and transfer of funds for a law firm overseeing the escrow

6.     The buyer receives the keys and possession on the day of closing, not on the day of signing

7.     The seller's funds are available upon recording the deed and the deposit of all required funds on behalf of the buyer

The purpose of closing is to make sure you get exactly what you’re paying for and that your payment goes to the right place. Whether it’s through escrow or at a roundtable meeting, at the end of closing, you are officially a homeowner. Congratulations!