Tips To Selecting the Perfect Closing Date
Congratulations! You found the perfect home and now all that’s left is to close on it. But wait! Don’t just throw a date out there. Choosing a closing date is pretty important. Sometimes, it could even mean the difference between securing your home, and losing it.
Selecting the right time to close helps ensure a smooth-sailing process, and can even eliminate some costs. So how do you know what the “right date” is? Glad you asked! Here are some tips to choosing the “right date” for you:
Days of the Week Matter
Everybody loves Friday because it’s the start of the weekend. But if you’re planning on closing on a Friday, you may want to reconsider. Just like you likely dont have to work the weekends, neither do many other people (including your lenders or underwriters). This means that in case you experience some unexpected hiccups with the closing process, you may not have access to the people who can help you most. In addition to avoiding Friday closures, try to also avoid the days before holidays.
Consult with Utility Companies
Often if a home has been vacant for a period of time, the utilities have been shut off. If you haven’t consulted with the utility company to be sure they can service your new place of residence, you may be without some modern day conveniences. Power, gas, and water are usually pretty necessary to living nowadays.
Assess your Costs
Unlike renting, mortgage payments are not prorated. You don’t make your first mortgage payment until the month after you’ve lived there. For instance, if you close in July, your first payment wouldn’t be until September (usually on the first day of the month). However, you still have to pay interest for the month you closed in. This means if you close earlier in the month, you will have to pay more in interest. Let’s say you close on July 8, then you would have to pay the interest for the remaining 23 days of July; whereas if you closed on July 21, you would only pay interest for the remaining 10 days of the month. If you’re tight on money, you may want to consider closing toward the end of the month to save some bucks.
Don’t be Rushed
The closing process can be pretty intense and lengthy. It takes time for the underwriters to secure all the information they need. Because of this, you want to give yourself, and your lender, plenty of time to gather and prepare all the necessary documentation. It’s not uncommon for some lenders to require additional information last minute– which could postpone your closing and move-in date.
The Earlier [in the month], the Better
If possible, try to abstain from selecting a closing date that is at the end of the month. Often, ends of the month are the busiest times for most people– homebuyers, title officers, and lenders alike. The less stress and burdens placed on these people, the better (especially if there are any last minute surprises to the loan).
Convenience with New Residence
If one thing’s certain, it’s that packing and moving is a long, arduous, and grueling process. Nobody wants to do it more than necessary. However, sometimes people find themselves in unfortunate events where their closing date doesn’t align with their new place of residence, and they have to temporarily move their goods to a storage unit, and reside in a hotel for a couple of nights. This can be avoided if your closing date coincides with the move from your old home to your new home.
Closing dates matter. By choosing the right date for you, you can same some money, and have peace of mind. Let NorthernTitle help you with the process. Our experienced team of professionals can help ensure you have a smooth-sailing process.