So you're ready to close on your new home. How do you know when you should close? Or, does it matter?
Actually, it does.
Here's what you should know about choosing a closing date.
Actually, it does.
Here's what you should know about choosing a closing date.
1. Choose a date that works for all parties, you, the seller, and the mortgage lender. Most people choose a closing date that's 30-45 days from the time the offer has been accepted.
And it's a good decision. Because mortgage lending is document intense, it's important to give your lender the necessary time needed to complete all the necessary steps in plenty of time.
What's more, you want to allow additional time just in case something unexpected happens. For example, the title company finds a defect on the home.
2. Your financial priorities--Which is more important reducing closing costs or more short term cash flow?
Scheduling your closing for later in the month will allow you to pay less interest at closing. If you choose a closing early in the month, you'll pay way more interest.
But you won't have to come up with a much larger mortgage payment for another 8 weeks instead of 5 weeks, (if you close later in the month.)
This isn't about saving money. Either way, you'll have to pay. This is about convenience. Decide which is more important.
3. Avoid 3-Day Weekend Closings--Don't close on your house the Friday before a 3-day weekend. Everyone wants to close up shop and get started on their extended weekend.
Don't risk the possibility of costly mistakes! Instead, choose the middle of week. A much better choice.
4. Don't forget your movers! Make sure your closing date coincides with when you plan to actually take possession of your new home. There's no point in moving your closing to the end of the month, if you won't even use the property for several weeks following closing.
5. Utilities-- Nobody likes to be without water and electricity! Don't forget to coordinate your utilities with your closing date.
And it's a good decision. Because mortgage lending is document intense, it's important to give your lender the necessary time needed to complete all the necessary steps in plenty of time.
What's more, you want to allow additional time just in case something unexpected happens. For example, the title company finds a defect on the home.
2. Your financial priorities--Which is more important reducing closing costs or more short term cash flow?
Scheduling your closing for later in the month will allow you to pay less interest at closing. If you choose a closing early in the month, you'll pay way more interest.
But you won't have to come up with a much larger mortgage payment for another 8 weeks instead of 5 weeks, (if you close later in the month.)
This isn't about saving money. Either way, you'll have to pay. This is about convenience. Decide which is more important.
3. Avoid 3-Day Weekend Closings--Don't close on your house the Friday before a 3-day weekend. Everyone wants to close up shop and get started on their extended weekend.
Don't risk the possibility of costly mistakes! Instead, choose the middle of week. A much better choice.
4. Don't forget your movers! Make sure your closing date coincides with when you plan to actually take possession of your new home. There's no point in moving your closing to the end of the month, if you won't even use the property for several weeks following closing.
5. Utilities-- Nobody likes to be without water and electricity! Don't forget to coordinate your utilities with your closing date.
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