SOME TIPS REGARDING CLOSING
Give yourself enough time. Don’t set a short closing date unless you are paying cash. As you can see, there are many steps to a home purchase. It takes time for the loan process to be completed. Ask your agent to make your closing aligns with the actual move from your old residence to the new home. Mortgage payments are almost always due on the first day through the 15th of the month. The payment is applied to the preceding month. Mortgage loans (unlike rent which is paid for the month that you are about to enter) is paid in arrears. As an example, if you close in July, the first payment (for August) is due on the 1st of September. However, interest is due for the month of July from the date of closing. If the close is early in the month, say on the 10th, you would have to pay for 21 days, while if the closing is on the 25th, you would to pay only six days of interest. Closing toward the end of the month will reduce the immediate out-of-pocket expense. Make sure that your LO and or attorney have told you exactly what you must bring i.e. photo ID, type of checks etc. The closing date in the contract can mean different things in different states. In some jurisdictions it is a true to target. In some states, like New York, where the date is considered "On or About" it is more of a "guide". The closing can easily happen up to 30 days after the target date without any legal ramifications. Your loan officer will explain the protocol where you are making your new home. You and the seller must be clear about what that date means to each of you regarding your need to leave your old home and be in possession of the new one. A closing can be held in any agreed location. Most happen at an attorney’s office, or at the lender’s or title company’s offices.
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