Waiting in Line at the Settlement Office

Closing DocumentsIt never seems to fail.  The end of the month is packed with closings.  The loan officers are scrambling, the settlement companies are swamped and the Realtors® are shuffling contracts to make sure everything is done.  But is closing at the end of the month all that important?

The answer may depend more on your cash in hand than any other reason.  For many first time homebuyers an end of the month closing means less money needed at the closing table.  First you probably made your last rent payment at the beginning of the month and if you close and move at the end of the month you don't have to worry about another rent payment.  Secondly interest on your mortgage begins on the day the transaction closes.  So if you close on March 30th then you only have to pre-pay interest for that month or in this case one day.  Your first payment will be due on May 1st,   when you will be paying April's interest.  Interest is always paid in arrears so in some ways April becomes a "free" month.

There is no harm in closing in the middle of the month and some settlement companies in Northern Virginia offer specials to encourage buyers to choose a settlement date other than the last few days of the month.   If you decide to close in the middle of the month you just need to have extra funds at closing to cover the pre-paid interest that will be due on your loan.  The good news is if you are buying a home at the end of the year and close in the middle of November you won't have a payment due until the 1st of January.

I generally encourage my first time homebuyers to look at the end of the month to close so they have a little extra money in hand for the incidentals.  For my move up buyers with cash from a previous sale I suggest they take advantage of the less frenetic middle of the month closing.  It is interesting to point out to buyers that no matter when you close you don't actually save any money in the long run.  Your final mortgage payment is still a long way out and it will due 15, 30 or 40 years to the day of your original close.

So it is the end of the month and I'm off to the settlement office!

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

Military Relocation Professional

Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



Comment balloon 3 commentsCindy Jones • July 30 2007 02:57PM
Waiting in Line at the Settlement Office
It never seems to fail. The end of the month is packed with closings. The loan officers are scrambling, the settlement companies are swamped and the Realtors® are shuffling contracts to make sure everything is done. But is closing at the end of… more
Fairfax County Wins it's Effort to Keep BRAC Jobs-So Now What?
After 2 years of study the Army today announced that they would not be moving all 22, 000 jobs originally slated for Fort Belvoir from Crystal City and Pentagon as part of the BRAC proposal announced in 2005. The impact on the local traffic and… more
National Harbor Rises on the Potomac River
Residents of Old Town Alexandria stare across the Potomac River at the enormous cranes that are building the new 300 acre National Harbor Resort Community and shake their heads. This area, once a tree covered shore, began to take shape as the… more
What’s Behind the Gates in Northern Virginia
I had the opportunity recently to tour the most expensive home currently for sale in Fairfax County. Listed for $14, 000, 000, Chateau in Oak Hollow is located on a 5 acre lot in an area just outside the historic town of Clifton Modeled after a… more
What You Get for the Money
I had a prospective buyer out yesterday and the topic came up about how much more house they could buy today than they could last year in either Prince William or Fairfax County Now I am a visual person by nature so I decided to go back and… more