• Avoid closing at the end of the month, if possible. This is the busiest time. Unexpected issues are better dealt with if title officers and lenders are readily available. • Make your closing align with the actual move from your client’s old residence to the new house. Ideally, the move should be from one to the other without a hotel stay in- between. This is better for your client and reflects favorably on you and your skills as an agent. • Mortgage payments are almost always due on the first day of the month with the payment applying to the preceding month. As example, if your client closes 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, the buyer would have to pay for 21 days, while if closing on the 25th, they 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 you schedule a closing and fail to complete it on that day, there are consequences. Your client 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.
REAL ESTATE AGENT'S LENDER RECOMMENDATION
26
Powered by FlippingBook