Understanding the Virginia Closing Process from Contract to Keys

What if closing day could feel simple? When you know what happens and when, you can plan with confidence and avoid surprises. Whether you are buying your first place or moving up within the Richmond area, understanding Virginia’s closing process helps you stay on track, protect your money, and get your keys on time. In this guide, you will learn each step from contract to recording, typical timelines in our market, what documents you will sign, and how to prepare. Let’s dive in.

Virginia closing at a glance

Closing, also called settlement, is when ownership transfers from seller to buyer. In Virginia, closings are conducted by a settlement agent, which is a licensed title company or closing attorney. They handle the title search, coordinate signing, receive and disburse funds, and record the deed and mortgage at the local Circuit Court.

Most financed purchases in the Richmond metro close in about 30 to 45 days from a ratified contract, depending on your lender, appraisal timing, and title work. Faster and slower timelines are common. Cash deals can close in about 7 to 14 days when all parties are ready.

Two federal timing rules protect you:

• Your lender must send a Loan Estimate within 3 business days of your loan application. See the Consumer Financial Protection Bureau’s overview of the Loan Estimate timeline and purpose.
• Your lender must deliver the Closing Disclosure at least 3 business days before closing. Learn more about the Closing Disclosure and the 3-day rule.

Step-by-step: contract to keys

1) Contract ratified

Once both parties sign, the contract is binding. You deposit earnest money per the contract, and your agent sends the ratified contract to your lender and the settlement agent. This starts your file and your timeline.

2) Title order and escrow open

Your agent or the listing side opens the title order with a settlement agent. The title company begins a title search and issues a preliminary title commitment listing items that must be cleared before closing.

3) Loan application and Loan Estimate

If you have not already, you complete your loan application. Your lender then issues your Loan Estimate within 3 business days so you understand the projected costs and terms.

4) Inspections and negotiation

You schedule your general home inspection and any specialty inspections you request, such as radon, termite, roof, septic, or well. Most Richmond contracts include an inspection contingency period of about 7 to 14 days. After reviewing findings, you can request repairs or credits. Your agent negotiates any agreement with the seller.

5) Appraisal ordered by lender

Your lender orders the appraisal. The appraiser visits the property and prepares a report to support the loan amount. If the value comes in low, you and the seller can renegotiate, you can bring additional funds, or you may be able to cancel if your contract allows.

6) Title clearance and HOA documents

While inspection and appraisal are underway, the settlement agent clears title exceptions. This can include collecting mortgage payoff statements, resolving old liens, or confirming easements. If the property is in a community association, required HOA or condo resale documents are obtained and reviewed.

7) Underwriting and clear-to-close

Your lender’s underwriter reviews your income, assets, employment, appraisal, and title commitment. You may be asked for updated bank statements, a homeowners insurance binder, or letters of explanation. When all conditions are satisfied, your lender issues a clear-to-close.

8) Closing Disclosure delivered

At least 3 business days before closing, your lender provides your Closing Disclosure. Review it carefully and compare it to your Loan Estimate. If major terms change after delivery, the 3-day period may reset under federal rules. The CFPB’s guide to the Closing Disclosure timing and review explains what to check.

9) Final walkthrough

You and your agent complete a final walkthrough, typically the day before or the day of closing, to confirm the home’s condition and verify any agreed repairs.

10) Signing day

At the settlement meeting, you sign your loan documents if you are financing, along with closing statements and other required affidavits. The seller signs the deed and payoff documents. You provide your funds by verified wire or cashier’s check as directed by the settlement agent. Some lenders allow mobile notary or remote signing.

11) Funding and recording

After signing, your lender wires the loan funds to the settlement agent. The settlement agent disburses payoffs and seller proceeds, and then records the deed and deed of trust at the appropriate Circuit Court for the city or county. When funded and recorded, you become the legal owner and you receive your keys per the contract.

12) Post-closing items

The title company issues your owner’s title insurance policy after recording. You receive final statements for your records. Taxes and association dues are prorated as of closing.

Title, insurance, and recording in Virginia

A title search reviews public records to confirm the seller’s ownership and identify liens, judgments, easements, covenants, or restrictions. The title commitment lists items that must be satisfied or excepted before the title company issues insurance.

There are two types of title insurance:

• Lender’s policy protects the lender’s interest in the property and is typically required for financed purchases.
• Owner’s policy protects your ownership interest against covered title defects. In many Virginia transactions, sellers often pay for the owner’s policy, but this is a negotiable term. Learn the differences in ALTA’s consumer explainer on owner’s and lender’s title insurance.

Recording happens with the Circuit Court clerk for the property’s city or county. Recording makes the transfer public record and sets the mortgage lien’s priority. You can learn about courts and recording offices through the Virginia Judicial System’s Circuit Courts directory.

Surveys are not always required. If you have questions about boundaries or potential encroachments, talk with your agent and settlement agent about ordering a new survey.

Lending, appraisal, disclosures, and funding

Your lender manages underwriting, appraisal ordering, and federal disclosures. The appraisal usually takes about 7 to 14 days after it is ordered, depending on appraiser availability. Underwriting timelines vary with your loan type and documentation.

Federal TRID rules require your lender to deliver the Loan Estimate within 3 business days of application and your Closing Disclosure at least 3 business days before closing. Review both closely. If you have questions about fees, ask your lender and settlement agent to walk you through the numbers.

At closing, you sign the promissory note, deed of trust, and closing statements. After signing, your lender funds the loan and the settlement agent records the deed and mortgage.

Important safety note: Wire fraud is a real risk in real estate. Always call your settlement agent using a verified phone number you obtain independently, not from an email, before sending any funds. The FBI provides guidance on business email compromise and wire transfer fraud. When in doubt, stop and verify.

What it costs and who pays

Buyer closing costs usually include lender fees, appraisal, title services and lender’s policy, recording fees, prepaid property taxes and insurance, and escrow setup. A common range cited for buyer closing costs, excluding your down payment, is roughly 2 to 5 percent of the purchase price. Actual costs depend on your loan type and contract terms.

Seller costs usually include mortgage payoff, brokerage commissions, prorated taxes and association fees, and in many local transactions, the owner’s title policy. Local custom varies, so check your contract and ask your agent how your specific deal allocates costs.

Timeline at a glance

Below is a simple timeline you can use to plan. Actual timing varies by deal, lender, and title clearance.

• Day 0: Contract ratified, earnest money deposited, title ordered
• Days 1 to 3: Loan application completed, Loan Estimate issued
• Days 3 to 14: Inspection period and any repair negotiations
• Days 7 to 21: Appraisal ordered and completed, title search underway
• Days 14 to 30: Underwriting, conditions cleared, clear-to-close
• At least 3 business days before closing: Closing Disclosure delivered
• Day of closing: Final walkthrough and settlement signing
• Same day or within 24 to 48 hours: Funding, recording, keys released

Pre-closing checklists

Buyer checklist

• Secure homeowners insurance and send the binder to your lender.
• Review your Closing Disclosure carefully and ask questions early.
• Arrange your wire or cashier’s check. Always confirm wiring instructions by phone using a known, verified number.
• Bring a government photo ID to closing, plus any documents your lender requests.
• Complete a final walkthrough near closing to confirm condition and repairs.
• Confirm who pays for the owner’s title policy per your contract.

Seller checklist

• Provide accurate payoff information for mortgages, liens, and judgments to the title company.
• Gather keys, garage remotes, codes, and appliance manuals for the buyer.
• Deliver required HOA or condo documents if applicable.
• Schedule final utility reads and confirm your move-out timing per the contract.

Local Richmond notes

• Recording is handled by the Circuit Court in the city or county where the property is located, such as the City of Richmond, Henrico County, or Chesterfield County. Recording timing can affect when keys are released.
• HOA and condo resale packets can take time to obtain. Ordering early helps keep your closing date on schedule.
• Property taxes are prorated at closing based on the local tax calendar. Your settlement statement will show these prorations clearly.

Lead-based paint disclosures

If the home was built before 1978, federal rules require the seller to provide disclosures about known lead-based paint and offer you the EPA and HUD pamphlet. You may also negotiate time for a lead inspection during your inspection period. Learn the basics on the EPA’s page for lead disclosure in real estate sales.

How we help you close with confidence

You should not have to navigate this alone. A local, hands-on team will coordinate with your lender and settlement agent, watch the appraisal and underwriting timeline, and keep your Closing Disclosure and signing on track. We help you spot issues early, verify wires safely, and make your final walkthrough smooth so you can focus on move-in day.

Ready to plan your Richmond closing or map out your timeline to buy? Talk with The Phil Lawson Team. Call Phil Now — Get a local expert on your side.

FAQs

How long does a Virginia home closing take?

• Most financed purchases close in about 30 to 45 days from a ratified contract, with faster or slower timelines depending on appraisal, underwriting, and title clearance.

When do I get the keys in Virginia?

• You usually receive keys after the settlement agent confirms funding and recording of the deed and mortgage with the local Circuit Court, per your contract.

What is the Closing Disclosure 3-day rule?

• Your lender must deliver your Closing Disclosure at least 3 business days before closing so you have time to review. See the CFPB’s guide to the Closing Disclosure.

Do I need owner’s title insurance in Virginia?

• It is optional but strongly recommended because it protects your ownership against covered title defects. Learn more from ALTA’s guide to owner’s vs. lender’s title insurance.

What if the appraisal is lower than my contract price?

• You can renegotiate, bring additional cash, or cancel if your financing contingency allows. Your agent will help you evaluate options and timing.

Can I sign my closing documents remotely in Virginia?

• Some lenders allow mobile notary or remote signings, subject to lender requirements and settlement agent procedures. Ask early so you can plan your schedule.

How are taxes and HOA dues handled at closing?

• They are prorated based on the local tax calendar and association billing. Your settlement statement shows charges or credits to each party as of the closing date.