The purchase or selling of a home is a very emotional experience. The selection of your closing date can help to ensure a smooth closing.

For various reasons, the most hectic days occur at the end of the month. When you choose to close at or near the end of the month, the chance for a problem to occur dramatically increases due to the heavy volume of closings that occur on those days. Many people falsely believe that if they close at the end of the month they are saving money as a result of paying less "odd-days" interest on their loan.

In most cases, lenders charge interest from the date of closing to the first day of the next month. The first "full" mortgage payment is then due the first day of the month that follows. For example, a home buyer who closes on the 20th day of September will pay (at closing) the "odd-days" interest until October 1st. Their first "full" mortgage payment will not be due until November 1st. Home buyers choose a date close to the end of the month simply to decrease the up front costs at closing. When individuals buy and sell a home the same day, it doesn't matter which day they close because whatever "odd days" interest they are not paying on the new home, they are paying on the current loan (if they have one). Simply put, you are paying interest for the days you actually own the home. You are not getting a "deal" by closing at the end of the month.

The end of the month closing "crunch" also affects more than just the title company. It affects the mortgage industry, utility workers, and also moving companies. We want your closing to be a positive exerience and get the most amount of attention to detail as possible. If closings are more evenly spread out throughout the month, each transaction can receive the highest level of service.

So, when it comes time to choose a closing date, I suggest trying to avoid choosing the end of the month unless specific conditions require it.