The best day to close a home purchase, or a mortgage refinance, is on the last business day of the month, unless it falls on a Monday. Then you should close on the preceding Friday so you don't have to pay interest over a weekend. Here's why. Mortgage interest is paid in arrears.
Your closing costs will be lower
The clear benefit of closing later in the month is that you won't need to bring as much cash to closing. That's because mortgage interest accrues from the date of closing through the last day of the month.
If you are refinancing a conventional mortgage, the closing date won't matter, either. You'll still pay the same amount of interest whether you close on the eighth or the 28th. The calculations are just different. Interest on the old loan stops on one day and starts on the new loan the very next day.
While Fridays are popular closing dates, steer clear of them if possible. Lots of purchasers like to move in over the weekend, so closing on a Friday makes sense but that is also what makes Friday not a good day for closing. Fridays are typically busy for both title companies and lenders, making delays more likely.
In most cases, the buyer chooses a tentative closing date and makes it part of the offer. The contract usually states that closing will occur "on or about" that date.
You can schedule the closing at any time as long as it falls within the 30 to 90 days you have to close. Just be aware that if you schedule too close to the deadline and something delays the closing, you might not be able to reschedule before the commitment expires.
Time your resignation wisely. The best time to resign is at the end of the day, and on a Monday or Tuesday. ... Resigning on Friday may deflate his/her weekend. Also, your boss will be in a better business frame of mind on Monday and will be able to use the whole week to begin making plans for handling your business.
You never close real estate deals in California on Monday. Why? To close a deal, the escrow company generally needs to receive the funds from the buyer and the buyer's bank the day before. ... The lender would expect to be paid interest for the two days the money sat in the bank over the weekend.
Wednesday is a great day to close on your loan. If the inevitable happens, closing gets bumped to Wednesday afternoon or Thursday. Schedule your movers and friends to move you in to your new home on the following weekend. Even if things continue to go wrong, you still have Friday to close.
If you are buying a new home from a Builder you can usually obtain the keys at the site office immediately after closing. Generally speaking, you should not plan on obtaining the keys until mid-afternoon on the day of closing.
When Is Your First Mortgage Payment Due After Closing? Your first mortgage payment will be due on the first of the month, one full month (30 days) after your closing date. Mortgage payments are paid in what are known as arrears, meaning that you will be making payments for the month prior rather than the current month.
Typically, the best time of year to buy a home is in the early fall. Families have already settled into new homes before the school year started. But the number of properties on the market is still relatively high compared to other times of the year, and sellers can be eager to sell.
If you need to be occupying your home by a certain date to save on rent, it's a much better deal to close at the end of the previous month (for example, January 30) instead of the beginning of the current month (February 1).
What to expect from your first mortgage payment. First payments can be higher than your ongoing monthly payment. This is because it'll include interest from the date we released the funds, up to the end of that month, plus your payment for the following month.
1 week out: Gather and prepare all the documentation, paperwork, and funds you'll need for your loan closing. You'll need to bring the funds to cover your down payment , closing costs and escrow items, typically in the form of a certified/cashier's check or a wire transfer.
Why Friday is not the best day to close
Try to schedule your closing for a Monday, Tuesday or Wednesday to allow for last-minute complications and allow yourself time to clear up the problem (such as the need to provide additional required documentation or come up with funds you did not anticipate).
A closing deal might fall through if the buyer and seller can't agree on who handles problems that arose during an inspection. ... For instance, if an inspection shows that the roof needs to be replaced, a seller might not want to invest in a large update before leaving.
Although closing may take place before originally planned, both parties must still agree to sign early closing documents. Just because either the buyer or seller can and will sign papers before the original closing date does not mean that the other party is contractually forced to sign early as well.
Closing on a house takes 30 to 45 days from when your loan begins processing. That does not include holidays or weekends.
Wire your money one to two days before closing. Don't wait and try wiring money day of closing day. There's too much going on, and there's no guarantee the funds will be available. That could lead to you closing late and not getting your keys on time.
This process usually takes 30 to 60 days to complete, if the buyer is taking out a mortgage on the property. If the buyer is paying cash (no loan needed), the closing process can be condensed to one or two weeks.
Buyers and sellers often have to meet certain contingencies, or conditions that make the contract binding. ... More often than not, though, sellers and buyers are able to negotiate through each closing milestone and come to an agreement, even if it's later than expected.
The closing date should allow you enough time to apply for and obtain a mortgage, if you will be getting a loan to help finance your purchase, and the seller will choose a closing date which allows ample time to move out and find a new home or property.
Typically, the final walk-through is attended by the buyer and the buyer's agent, without the seller or seller's agent. This gives the buyer the freedom to inspect the property at their leisure, without feeling pressure from the seller. If the property is a new home, a builder or contractor may attend.