an offer, the buyer will include a closing date; depending on the seller’s situation, it might be acceptable or be countered with other terms. Don’t choose a date casually. The right date can ensure a smooth closing and reduce closing costs; the wrong date puts you at risk of not closing on time, needlessly complicating the move, increasing expenses, and even losing your new home. Expenses are prorated through the closing date rather than through a specific calendar date, so, generally speaking, no day of the month is inherently better than another to close. However, if you’re using a mortgage, there are some differences in what is collected as a prepaid 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, all of which take time. 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, including lenders and title officers. • 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 all your local utility companies to ensure they can start service on the closing date. • Mortgage payments are usually 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 158
Powered by FlippingBook