many steps to a home purchase. It takes time for the loan process. A short closing date might predate final loan approval. Don’t set a short closing date unless you are paying cash or working with a broker like myself who can close quickly in most circumstances. Whatever the case, ask your broker or loan officer ahead of time how soon they can close. • Avoid closing at times where it is typically busy such as right before holidays, late on Friday and sometimes, at the end of the month, if possible. Unexpected issues are better dealt with if title officers and lenders are readily available. Many of my lenders allow remote, virtual or hybrid closings; consider trying one of these options. • Ask your agent to make your closing align with the actual move from your old residence to the new house. Ideally, the move should be from one to the other without a hotel stay in-between. • Mortgage payments are almost always due on the first day of the month with the payment applying to the preceding 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 33
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