You’re gearing up to submit an offer now that you’ve found your dream home. But is there a worse day to close on a House? What is the best day to close on a house? Do days and times affect closing on a house? These are good questions, and yes, the day, time, and month you choose to close on your house can affect the total amount of money you will pay and the efficiency of the process.
The closing phase of a house is usually a rollercoaster of emotions, ranging from excitement to apprehension. In this comprehensive guide, you will understand the worst day to close on a house, the best day to close on a house, and credible information to help you get maximum value when closing on a house.
What Is The Worst Day To Close On A House?
Closing on a house during the last Friday of the month or the Friday preceding a three-day weekend is not advisable and can be considered the worst day to close on a house. Fridays are considered the worst day to close on the house because it is the least favorable time. There is a tendency to rush the homebuying process and a high tendency to make costly mistakes. Also, mistakes made on Fridays are not easily rectified over the weekends, which can be a severe problem most times.
Wednesday is considered a better choice compared to Fridays and Mondays. Despite the day you choose for closing, It’s essential to ensure that all documents are ready and accurate and necessary aspects are thoroughly covered, including inspections, mortgage arrangements, and down payments.
What Is The Best Date To Close On A House
Closing on a house at the beginning or later dates of the month has unique advantages. Your peculiarities will determine which you have to go with.
Close at the end of the month, it is a popular choice among buyers and usually offers many benefits. They are:
- Reduced closing costs: Closing towards the end of the month can lead to lower closing expenses. This is because your upfront interest and tax payments are calculated from the closing date to the month’s end, resulting in a shorter period for these expenses to accumulate.
- Maximizing rental value: If your lease ends at the month’s conclusion, closing towards the end allows you to utilize your rental space until the lease expiration date fully. Rather than vacating with weeks remaining on your lease, you can reside in the property until the final day of your lease term.
For instance, suppose your apartment lease terminates in June, and you choose to close on June 28. Since June has 30 days, you’ll only be responsible for mortgage interest for the last three days (June 28, 29, and 30). Closing aligning with the lease end date prevents the need to vacate or extend the lease prematurely.
On the other hand, closing at the beginning of the month presents its own set of advantages. While you cannot skip a mortgage payment by closing early in the month, there are unique benefits to consider:
- Reduced scheduling competition: With fewer buyers opting for early-month closings, you’re less likely to encounter scheduling conflicts or competition when arranging your closing date.
- Extended preparation time: Closing at the start of the month provides you with additional days between settling your closing costs and the first mortgage payment. For instance, if you close on April 1, you have ample time to prepare before your first mortgage payment becomes due on June 1. In contrast, closing on April 30 leaves you with a shorter window to prepare for the first payment.
Choosing between closing at the end or beginning of the month depends on your specific circumstances and preferences, weighing factors such as cost considerations, rental agreements, and scheduling flexibility.
What Day Of The Week Is Best For Closing?
The date of the month is not the only factor you should consider when closing on a house. The day of the week can also influence your closing on a house process. Tuesdays and Wednesdays are considered the best months to close a house. This is because mistakes made can quickly be corrected before the weekend. Also, there is less likely to be a rush at this time. Additionally, you have a few days to handle administrative tasks, coordinate moving logistics, and settle into your new home before the weekend arrives.
What Is The Best Day To Settle On A House?
Friday is the most common day to settle on a house, but it is advised that Tuesday is the best day to settle on a house. This is because settling on a house on Tuesday offers flexibility in scheduling. It allows lenders, real estate agents, and attorneys to better coordinate their availability without the constraints of a weekend looming. Additionally, it avoids the rush hour issue commonly experienced on Fridays.
What Takes The Longest To Close On A House?
Once a mortgage becomes involved, the average timeline for closing expands to between 30 to 60 days, with purchasing mortgages generally closing a few days faster than refinances.
Moreover, the type of mortgage also influences the closing timeline. Government-backed loans generally require more time to close compared to conventional loans. Additionally, market conditions play a significant role in the duration of the closing process. The impact of COVID-19 on closing timelines is evident, highlighting that refinancing isn’t consistently slower than purchasing.
What Are The Best Days And Times For Open Houses?
Determining the best days and times for open houses requires careful consideration and research. Traditionally, Saturdays and Sundays are the best days for open houses since more people are available to attend without the constraints of work or school. Weekend open houses allow a broader pool of potential buyers to visit the property.
Industry experts recommend hosting open houses in the afternoon, typically between 1 PM and 4 PM. This timeframe allows prospective buyers ample time to visit the property after completing their morning activities, such as chores or other errands, but before the day’s end.
Additionally, Avoiding scheduling open houses on major holidays or holiday weekends is advisable when people are likely to be preoccupied with other commitments or travel plans.
Frequently Asked Questions (FAQs)
What is the fastest time to close on a house?
It is feasible to close on a home within 30 days, especially if you’re making an all-cash purchase or working with a homebuying company or iBuyer. However, on average, data from ICE Mortgage Technology indicates that the average closing period for a home is around 44 days. The average timeline for closing on a house is 30 to 60 days.
What is the difference between signing and closing date?
By signing a purchase agreement, the involved parties commit to transferring ownership of the purchased item. The date when this transfer of ownership occurs, whether it involves shares in a share deal or assets in an asset deal, is known as the closing date.
What comes after the closing?
After closing, several essential steps follow. They include recording the deed, updating utilities and your address, and transitioning into your new home. Additionally, your initial mortgage payment will be due on the first day of the month following the closing date.
What does the closing date mean in the agreement?
The closing date is often designated when the conditions outlined in the real estate agreements are met, and the transactions outlined in the agreement are ultimately concluded.
Conclusion
The timing of closing on a house and scheduling open houses are crucial decisions that can significantly impact the outcome of a real estate transaction. While Fridays may pose challenges due to rushed processes, Tuesdays and Wednesdays are the best days for closing, offering ample time for rectifying errors. Choosing to close at the beginning or end of the month depends on individual preferences and circumstances. Understanding these factors and planning accordingly can streamline closing, minimize errors, and optimize opportunities for successful real estate transactions.
