an o ff er, the buyer will include a closing date; depending on the seller’s situation, it might be acceptable or be countered with other terms. Don’t choose a date casually. Th e right date can ensure a smooth closing and reduce closing costs; the wrong date puts you at risk of not closing on time, needlessly complicating the move, increasing expenses, and even losing your new home. Expenses are prorated through the closing date rather than through a spe cifi c calendar date, so, generally speaking, no day of the month is inherently better than another to close. However, if you’re using a mortgage, there are some diff erences in what is collected as a prepaid item and when the fir st mortgage payment is due. Some advice and tips: • Give yourself enough time. Don’t set a short closing date unless you are paying cas h. Th ere are many steps to a home purchase, all of which take time. A short closing date might predat e fin al loan approval. • Avoid closing at the end of the month, if possible . Th is is the busiest time for the various agents involved, including lenders and title o ffi cers. • Make your closing align as closely as possible with the actual move from your old residence to your new house. Ideally, your move should be from one to the other without a hotel stop in between. • Arrange with all your local utility companies to ensure they can start service on the closing date. • Mortgage payments are usually due on th e fir st day of the month and the payment is for the preceding month. For example, if you close in July, yo ur fir st payment is due on 165
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