Buying a House? There are advantages to choosing a closing date in Lansing Michigan: close on the first or the last of the month. Whether you are the buyer or seller, you have a vested interest in the closing date working for you. The date is negotiable until the contract offered by the buyer is accepted by the seller. From that point on, all efforts must be made to ensure the date is met. If you don’t close on time, you can complicate your move and risk losing the house.
As a first time homeowner or buyer, you need to give yourself plenty of time to work out details with your lender. Most people set a closing date 30 to 45 days after the offer is accepted. A home purchase has many moving pieces and there’s always a risk that more time will be required than you think. This is important to consider regardless if you plan to buy a house in Meridian or Dewitt Charter Township. For example, the lender such as Dart Bank or Michigan State University Federal Credit Union, may ask for additional documentation as part of the loan process. Unless you are paying cash, you don’t want a quick closing date.
Frequently, it is wise to choose a closing date near the end of the month. Interest is prorated from the date you close to the last day of the month, so you will pay less if you close near the 30th. For example, did you know? If you close on July 10, you will have to pay 21 days of interest. If you close on July 25, you only pay six days of interest result in a savings of several hundred dollars due at time of closing.
However, there is one main advantage to closing early in the month. While you will indeed pay more in pre-paid interest, you won’t have a house payment for nearly two months. This may be your best choice when considering cash flow during your move. Loan interest is paid in arrears and your pre-paid interest will cover to the end of the month. If you close in early July, for example, you won’t have a house payment due for August until the first of September. Also, because many people choose the end of the month for their closing, it is the busiest time for mortgage brokers. If the lender has a backlog, the closing could be delayed.
You will establish an occupancy date as well as a closing date. At closing, you will get ownership of your new home. The title company can answer more questions about this process. Contact TRI Title Agency in East Lansing, Transnation Title in Saint Johns MI, Liberty Title, or Diversified National. However, the actual move-in date may occur later depending on your circumstances. Sometimes sellers have already vacated the property or will move out immediately upon closing. Other sellers such as families may request an extended occupancy due to the move-in date of their next home and will then pay rent to you as the new home owners until they are gone. Also, you may choose to do some renovation work on your new home before moving in and will plan on a later occupancy date. Of course, your plans will need to coordinate with the move-out date of the property where you currently live.
One last tip: avoid the holiday rush in Greater Lansing MI. If you are planning to make your move over a holiday in town, such as Thanksgiving or Christmas, don’t schedule your closing date for the Wednesday before Thanksgiving. Back it up to the Monday prior so that any glitches that might arise won’t derail your long-weekend moving plans.
Throughout the closing process, your RE/MAX Dewitt real estate agent will guide you in planning dates and avoiding pitfalls. Lean on their expertise and you’ll be living in your new dream home before you know it!
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