Posted 2.8.13 @ 13:20
You’ve found the right home, you have your financing in place, now it’s time to choose the right closing date for your Oakville luxury real estate. If you don’t have a say in your closing date you might be in trouble – it’s one of the few things you can control! If you close at the beginning of the month you’ll have to pre-pay interest, while closing at the end of the month will make your closing costs much smaller. You don’t want to try to close around the holidays because the mortgage broker and lawyers could be working through a backlog (before or after). Finally don’t make the move until you’re ready – make sure you know when you’re going to be ready to move into your new home.
Cash Crunch? Consider Closing at the End of the Month
If you’re experiencing a slight cash crunch, think about closing at the end of the month instead of the beginning. If you close on the first day of the month you’ll have to pay all that interest for that month ahead of time. Closing at the end of the month gives you the option to just pay a week or a day and save big. You should always work with your lender and your broker to find the best day to close; while you might not be able to close on the 31st, you’ll be able to find a day that works and keeps your cash situation good.
When are You Ready to Make the Move?
You need to know when you’re ready to make the move! If you’re not going to have everything packed up and ready for the movers until the middle of the month, why schedule closing for the very first day of the month? This way you don’t have to pre-pay interest on a home that you’re not going to be able to use yet and it’ll keep your closing costs low too. Scheduling everything together can be a bit of a hassle but it’ll be well worth it when it comes time to sign on the dotted line.
Don’t Get Stuck in a Holiday Closing
Holiday closings are the worst – if you try to close right before a holiday everything will be rushed, while closing right after a holiday you can end up with delays to close on your Oakville luxury real estate. Don’t get stuck in the holiday trap, schedule around them.
Remember that lenders generally need 30 to 45 days to approve your financing but after that you should be in the clear. While you might be in a rush to close no one wants to try and get in there right before Easter or Canada Day. Take your time, work with the seller, your lender and any lawyers and brokers to make sure you’re selecting the closing date that’s right for all parties involved.