Mark Slade - FirstTimeBuyer

Expenses are prorated through the closing date rather than through a specific calendar date, so generally there is no inherently “better” day of the month to close. However, if financing a mortgage there are some differences in what is collected as a pre-paid item and when the first mortgage payment is due. Some advice and tips: • Give yourself enough time. Don’t set a short closing date unless you are paying cash. There are many steps to a home purchase. It takes time for the loan process to wrap up. A short closing date might predate final loan approval. • Avoid closing at the end of the month, if possible. This is the busiest time for the various agents involved, and unexpected issues are better dealt with if title officers and lenders are readily available and not overloaded with other demands. • 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 your local utility companies to ensure they can start service on the closing date. Living without water, heat, air-conditioning, or internet access until they are activated is unnecessary, not to mention unpleasant. • Mortgage payments are almost always due on the first day of the month and the payment is for the preceding month. For example, if you close in July, your first payment is due on the 1st of September. However, interest is due for the month of July from the date of closing. If you close early in the month, say on the 10th, you would have to pay for 21 days, while if you close 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 — this is part of why the end-of-month period is so busy for agents! If you schedule a closing and fail to complete it on that day, there are consequences. You will face increased closing costs next month, in addition to any contractual penalty for the delay. Although most sellers


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