How Your Closing Date Effects The Mortgage…
There are a few ways the closing date picked can effect the mortgage:
1) Quick Close Specials.
Some banks offer quick close specials, and different rates depending on how far out the closing date is. If the closing date is within 30 to 45 days, the client may be able to get 0.05% off their rate. Not a huge discount, but worth knowing about!
2) Monthly Payment Date.
Most banks these days will simply set the payment date on the same day as the closing day. So if you closed on August 9th, your first payment will come out September 9th. You can move the date forward (i.e. to September 1st), but it will be a full payment (not an interest only payment or interest adjustment payment).
3) Enough Time To Get Everything Done.
Of course, the flip side, is that the bank needs enough time to get the mortgage properly reviewed and approved. Home inspection, Appraisal (if needed), and legal work all needs to be done. 3 weeks is tight to get it done, but sufficient.
The sweet spot is 3 weeks to 6 weeks from the date the offer is written.
Disagree? Leave me a comment, I’d love to hear from you.