Advantage of a early/mid/late month close?
I'm buying a new construction home and am currently renting on a month-to-month lease. It is near complete, and I have the ability to select my closing date. Are there any advantages to an early, mid, or late month close? I'd like a week overlap so I can move into the new house casually. And is a 30 year fixed the best loan for this? by justinbd3 from Wilmington, Delaware. Jun 27th 2011
Craig S. Spaulding (togabroker2@yahoo.com)
#54 ranked lender in New York - 18 contributions
Congratulations on your purchase- That's exciting ! There aren't any real advantages to the specific closing date. As far as the length of the loan- It would be in your best financial interest to go with the shortest term that is affordable to you. The shorter the term- the lower the interest rate and less interest that you will have to pay to the bank. If you have any more questions- Don't hesitate to ask me.
Geoffrey Tirabassi (geoffrey.tirabassi)
#67 ranked lender in New Jersey - 34 contributions
I would not worry about which part of the month my loan closes. It will all be the same in the end. If you close in the begining of the month you have more days worth of pre-paid interest added to closing figures however your first payment due will be further out. on the other side if you close late in the month you have less pre-paid interest added to your closing figures but you first payment due will be sooner. so either way it's all relative.
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