month. As 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 closing on the 25th, you would have to pay six days of interest. If money is tight, closing toward the end of the month will reduce immediate out-of-pocket expense. If your agent schedules a closing and fails to complete it on that day, there are consequences. You will face increased closing costs the following month, in addition to any penalty for the delay. Although sellers may work with buyers if the transaction does not close on time, failure to close opens the door to the seller canceling the sale. This happens when it’s a seller’s market, and the seller may have taken backup offers that are potentially better. 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. We can also arrange for a notary signing at your home or office, if that is more convenient.
REAL ESTATE AGENT'S LENDER RECOMMENDATION
You’ve just read the loan process from beginning to end. You know what the process entails and hopefully are thinking of ways to better navigate the treacherous waters of the four lending phases. Often, your real estate agent will offer to help you obtain a mortgage or recommend a specific loan officer, lender, mortgage broker, or settlement/closing agent.
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