The FOCUS on NOVA Real Estate® provides insight to the best time of month to schedule your closing and the financial considerations of your timing.

We are discussing when, during the month, is the best time to close. Traditionally people tend to close towards the end of the month where they only have to pay interest from the time they close until the close of the month. So if you closed on January 28th you would bring interest for the 28th, 29th, 30th, and 31st. Then you would not have a mortgage payment until March 1st.

There is a trick to the trade if you are not short on cash. You can come to closing at the beginning of the month and pay all of the interest for that month. So for instance if you were to close on January 6th, you would bring the remaining 25 days of interest at the time of closing. You would then not have a mortgage payment until March 1st, almost two full months later.

When you are a little bit short on cash and you have to close your transaction in the first of the month, make sure you do that in the first five days. The lender typically will give you a closing cost credit towards your closing costs, reducing the total cash to close, and then your first mortgage payment would be due on February 1.

This is a lot of information and we would love to discuss it further with the help of one of our preferred loan officers. Contact us today.