The Closing Process Explained

Understanding Your Closing in Arizona

Closing is the final step in buying or selling a home. In Arizona, the closing process has some unique characteristics compared to other states. Here's what you need to know to prepare for a smooth closing.

The Arizona Closing Timeline

From accepted offer to closing typically takes 30-45 days in Arizona. Key milestones include: earnest money deposit (within 1-3 days of acceptance), inspection period (typically 10 days), appraisal (ordered within first week, completed within 2-3 weeks), loan underwriting and approval, and final walkthrough (24-48 hours before closing).

Before Closing

At least 3 business days before closing, you'll receive a Closing Disclosure document that outlines your final loan terms, monthly payment, and closing costs. Review this carefully and compare it to your original Loan Estimate. Ask your lender about any discrepancies.

Closing Costs in Arizona

As a buyer in Arizona, expect to pay 2-4% of the purchase price in closing costs. These typically include: loan origination fee, appraisal fee, title insurance, escrow fees, recording fees, prepaid property taxes and insurance, and HOA transfer fees. Sellers typically pay 5-7% including agent commissions and their share of closing costs.

At Closing

In Arizona, closing typically takes place at a title company or escrow office. You'll sign dozens of documents including the deed of trust, promissory note, and transfer documents. Bring a valid government-issued photo ID and a cashier's check or wire transfer for your closing costs (personal checks are not accepted for large amounts).

After Closing

Congratulations — you're now a homeowner! The deed will be recorded with the county recorder's office within a few business days. Make sure you have homeowner's insurance active from day one, set up utilities in your name, change your address, and start planning any improvements you want to make.

Arizona-Specific Closing Notes

Arizona is an escrow state, meaning a neutral third party (the title/escrow company) handles the closing process. Arizona also uses a deed of trust rather than a traditional mortgage. Property taxes in Maricopa County are due in two installments (October and March), and your escrow account will typically handle these payments.