||When you purchase a property, the time at which you pay for the home and you and the seller sign the final documents is referred to as closing or settlement. At this time, the deed will be prepared for recording and the mortgage period will officially begin. Different states have different procedures regarding settlement. Your settlement will be either face to face with a seller at a meeting or will be handled in escrow. If your settlement is face-to-face, you'll normally have your real estate agent and attorney with you as well as a representative for your lender.