The “closing” is the last step in buying and financing a home. The “closing,” also called “settlement,” is when you and all the other parties in a mortgage loan transaction sign the necessary documents.

After signing these documents, you become responsible for the mortgage loan. Familiarize yourself with some of the key documents you will be signing so that you know what to look for when you get them.

If you’re purchasing a home with a loan, the closing of your loan (the time when your loan becomes final and the funds are distributed) and the closing of your home purchase (when you become owner of your new home) typically happen at the same time. Once the closing is complete, you are legally required to repay the mortgage.

Reference:  https://www.consumerfinance.gov/