Your Closing Date Is Key

Dated: August 24 2017

Views: 6

Your Closing Date is Key

There are advantages to choosing a closing date either close to the first or close to the last of the month. Whether you are the buyer or the seller, you have a vested interest in the closing date working for you. The date is negotiable until the contract offered by the buyer is accepted by the seller. From that point on, all efforts must be made to ensure the date is met. If you don’t close on time, you can complicate your move and risk losing the house.

As a buyer, you need to give yourself plenty of time to work out details with your lender. Most people set a closing date 30 to 45 days after the offer is accepted. A home purchase has many moving pieces and there’s always a risk that more time will be required than you think. For example, the lender may ask for additional documentation as part of the loan process. Unless you are paying cash, you don’t want a quick closing date.

Frequently, it is wise to choose a closing date near the end of the month. Interest is prorated from the date you close to the last day of the month, so you will pay less if you close near the 30th. For example, if you close on Oct 10, you will have to pay 21 days of interest. If you close on Oct 25, you only pay six days of interest result in a savings of several hundred dollars due at time of closing.

However, there are certain advantages to closing early in the month. While you will indeed pay more in pre-paid interest, you won’t have a house payment for nearly two months. This may be your best choice when considering cash flow during your move. Loan interest is paid in arrears and your pre-paid interest will cover to the end of the month. If you close in early July, for example, you won’t have a house payment due for October until the first of November. Also, because many people choose the end of the month for their closing, it is the busiest time for mortgage brokers. If the lender has a backlog, the closing could be delayed.

You will establish an occupancy date as well as a closing date. At closing, you will assume ownership of your new home. However, the actual move-in date may occur later depending on your circumstances. Sometimes the sellers have already vacated the property or will move out immediately upon closing. Others may request an extended occupancy due to the move-in date of their next home and will then pay rent to you as the new home owners until they are gone. Also, you may choose to do some renovation work on your new home before moving in and will plan on a later occupancy date. Of course, your plans will need to coordinate with the move-out date of the property where you currently live.

One last tip: avoid the holiday rush. If you are planning to make your move over a holiday, such as the four-day Thanksgiving weekend, don’t schedule your closing date for the Wednesday before Thanksgiving. Back it up to the Monday prior so that any glitches that might arise won’t derail your long-weekend moving plans.

Throughout the closing process, your real estate agent will guide you in planning dates and avoiding pitfalls. Lean on their expertise and you’ll be living in your new dream home before you know it! We are All About Texoma each and every day helping you with all of your Real Estate needs. 

Latest Blog Posts

55 Annual Whitesboro Peanut Festival October 16th 2021 Downtown Whitesboro TX

55Th Annual Whitesboro Peanut Festival Downtown Whitesboro TexasDate October 16th, 2021come on out and enjoy the event.This is sure to be a good time for allFun For the Entire Family* Over 200

Read More

Grayson County Market Report July 2021

Grayson County homes for sale 237 home on the market Check out what is on the market  >>>> https://myre.io/0M8uYcPzXGPu <<<<<<  July 2021 home sales for

Read More

Celebrate with us July 3rd 2021 Downtown Whitesboro TX

Welcome to downtown Whitesboro, please join us in celebrating the July 4th HolidayIndependence day is a federal holiday in our beautiful country of the United States of American. The Declaration of

Read More

How to sell your Texoma house: Tips for a smooth sale

How to sell your Texoma house: Tips for a smooth sale.Step 1: Decide how you're going to sell. Texoma HomeStep 2: Determine list price. This is how as a Texoma Realtor we can help you with

Read More