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Does the Day of the Month Matter for Closing?

It's not uncommon for buyers and sellers, especially those with mortgages, to want to avoid closing at the beginning of the month, but does it really matter? Put simply, it matters for about a month if your budget is really tight, but not nearly as much if you have a healthy savings account. For those with a mortgage, it impacts the timing of your first mortgage payment.

If Buying with a Mortgage

You pay less up front if closing at the end of the month, but your 1st mortgage payment hits sooner if doing so since the 1st payment is not based on days after closing but by the time of the month (typically the 1st day of the 2nd calendar month after closing, i.e. November 1st if you closed today, September 28) regardless of when during the month you close. If you were to close on October 1st, your first monthly payment wouldn't hit until December 1st.

When you factor in the costs that you initially will incur around the time of your purchase, as long as you have healthy savings that won't dip too far due to your purchase, it's not really a problem. If there are factors involved that may or may not cause that to happen, such as low savings or purchasing a home with no home inspection, you are more likely to encounter budgeting problems.

If Selling with a Mortgage

Buying & Selling Whether You Have a Mortgage or Not

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