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 September 1. However, interest is due for the month of July from the date of closing. If you close early in the month, you’d have to pay more interest than if you close nearer to the end of the month. If money is tight, closing toward (but not at) the end of the month will reduce immediate out-of-
202
Powered by FlippingBook