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5 Tips for Setting a Closing Date


The closing date is an important part of the home buying process and you should understand your options. It is one of the negotiable contract terms and is very often a key strategic bargaining element since both the seller and the buyer have a vested interest in the timing of the closing date.

Obviously, and most importantly, you must first consider two important dates. Number one… the date you have to be out of your current home or lease and, the estimated date on which the lender will be ready to fund the loan.

TIMING is Everything- Part of the Month

As for when the closing date falls – a factor is prepaid interest, which is paid at closing. Prepaid interest is prorated from the date you close to the end of the month, so consider that you will pay less if you close at the end of the month. One caveat, is there are likely many others attempting to do the same. So, often there is a jam packed calendar making this difficult. Ask EARLY and ultimately, you may have to be flexible.

The Other Side of the Coin

While closing at the end of the month is a great way to save on pre-paid interest, closing at the beginning will delay your actual first house payment by up to two months. This is a great way to free up a hunk of cash for moving and home repairs and updates you may want to do.

Home for the Holidays?

This may seem like a good idea, but we recommend just enjoying the typical Holiday goings on without adding a potentially crazy stressor like closing and moving in to the equation.

TIMING is Everything – Day of the Week.

After you “close” there are more steps that must happen. The title company will need to get the deeds recorded and then give you the keys. So don’t plan on a closing date of Friday if you want to use the weekend to make the move. We would suggest close at
least by Wednesday to allow additional business to take place on Thursday and Friday. So by the time Saturday comes, you’ll be all set.

Selling Too?

If you are selling one home to move into another, your existing mortgage is also potentially a huge factor. Consider each loan’s interest rate, and choose your date based on the most advantageous rate.

Tracy and her team can help you plan and organize your closing to be as strategically desirable as possible. Contact her today to get the most out of your move.

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