Choosing a closing date
So many people think that the end of the month is the best time to close because you will pay less money. I’m not really sure where this myth came from but I know it’s been around since at least the early 90s. I think it may have something to do with per diem interest. Folks, you are going to pay the lender interest regardless. It’s true that if you close at the end of the month there will be less collected at closing, but because you typically don’t make a payment for two months, those interest payments will be collected as well and if you have a current mortgage you are still making those daily interest payments until closing. So it really all comes out in the wash regardless of what day you close.
When is the best time to close? Any day but the end of the month. Any day but Friday. Ask any closing attorney or paralegal when their busiest days are, they will tell you. Especially if you have what’s called a back-to-back closing, where you are selling your house and then purchasing a new one. There are sooo many big and small things that can delay a closing! The lender may need some last minute qualifying information and hasn’t gotten the closing package out to the attorney yet. The survey or pest inspection isn’t back yet. The seller’s attorney hasn’t prepared or delivered the deed yet. If you give yourself some wiggle room and pick a less popular day to close I’m betting you’ll have a less stressful closing experience.