You’ve been waiting months to find the perfect piece of real estate in Chicago, and now closing day is almost here. But, is there a ‘right’ time to close? The answer is yes, especially if you want to save money on interest.
- Consider the end of the month. Closing on a new home at the month’s end means you won’t pay as much prepaid interest, since you have to pay from the date of closing through the end of the month at that time. The more days remaining in the month when you close, the more you have to pay.
- Coordinate move-out dates. One of the biggest mistakes new homeowners make is failing to properly line-up their move-in and move-out dates. Avoid paying for temporary housing by sticking to a firm plan for when you are going to move out of your current home.
- Avoid Fridays and the day before holidays. You might think it is a good idea to close the day before Thanksgiving, for example, and then use your vacation time to settle into your new home. However, if anything were to go wrong on these days, your move may be pushed back an entire week. The same goes for Fridays—if there’s a problem with paperwork or any last minute changes, you won’t be able to move into your home until the following week.
Closing can be a bit stressful regardless of when it happens, but by choosing your closing date wisely you can make the process a bit easier on yourself.