Many factors go into choosing the right closing date during a home purchase. You may not get much of a choice as the buyer, depending on the stipulations set by the seller. In addition, if you’re selling your own house, that may impact your closing date.
Another factor many buyers consider when it comes to the closing date is the mortgage interest rate and approval. Your rate may only be good for a set amount of time before it could increase.
Is the Closing Date Really That Important?
Yes, the closing date is important and it really does matter when you sign the paperwork. If you’re getting ready to sign a purchase agreement, you have started to advance the process of buying the home. However, the right closing date needs to be considered before you come to an agreement.
Your closing date could keep the closing costs lower and may help you save money in other ways. When it comes to the rest of the home-buying process, you want to ensure it runs smoothly with the right legal and real estate professionals leading the way.
Keep All Parties in Mind
For most home purchases, you’ll have a buyer, a seller, a lender, and two real estate agents. If you’re paying cash, you can eliminate the lender, but you still have several parties to keep in mind when setting a closing date.
The date needs to work for all parties and it’s usually scheduled 30 to 45 days after the seller has accepted the offer. This provides the necessary time to get the mortgage documents put together and fully approved. The last thing you need is the closing date arriving before the financing has been approved.
Avoid the End of the Month
If at all possible, don’t schedule your home closing for the end of the month. It tends to be the busiest time of the money for most people. Title companies, real estate agents, and lenders are all trying to close out their month and they may be under the gun to hit specific numbers.
It’s easier to get things done when they are not in a hurry and fewer mistakes will be made. Try to set a closing date for the beginning or the middle of the month, whenever possible. You should also try to avoid Fridays and holidays for closing.
Coordinate the ate with Your Move
Moving is never easy, but it becomes more difficult if the closing date for your new home isn’t well coordinated with your move from your current home. Whether you’re renting or selling your current home, make sure you will be taking possession of your new home on the right date with your move out date from your current home.
If you plan to handle some repairs or renovations on the new home first, make sure you have a place to stay until those projects are completed. When it comes to setting your closing date during a home purchase, you want to choose a date based on all the necessary factors. It’s important to figure out which date is best for you and for all the other parties involved before agreeing to a specific closing date.