Closing On Mortage And Need Advice
Newbie here
So I was suppose to close on oct 30th and now my lawyer and the seller are trying to push the date back cause there being jerks. But people have told me that it is important to close at end of the month for tax purposes and for your mortgage. Can someone help me here, I am so stressed. It seems like my lawyer works more for the seller then me.
Thanks
The owner lives out of state and can't amke oct 30th but said in contract that he would have someone to rep him. As for my lawyer he acts like he can careless about anything and once talk me to rip up my contract. My lawyer I think didn't order the paperwork and now we may be delayed because of that and that is really on him, so I hope to make at least the 1st of the month. There is work to be done and I want to move in within 1 month of the closing.
But about the mortgage, you think there is no diff weather we close ed or middle or beginning?? I heard something about taxes and also a mid month mortgage.
Thanks for all your help
Its been a ride to say the least
Bump one time for the experts.
Thats for everyone that reads and responds
they say to close at the end of the month because you will pay less 'up front' interest. if you settle the 1st of the month, you basically will have a whole loan payment included on the HUD. if you settle month end, you only pay a day or two.
when paying off a FHA loan, you always pay that on the first of the month because of the way the loans are structured. if you pay any time other than the first, you still owe a full month of interest.
you are the boss. tell your lawyer what day you want to settle and don't let him move the date. his calendar certainly isn't full a month ahead of time. October 30 is a Saturday so pick Thursday or Friday of that week - if the seller can't be there it doesn't matter - he can sign his few docs the day before and overnight them to the lawyer's office for your closing.
and really if you pay that up front interest it just costs more at the table because your 1st monthly payment will be pushed back. So closing October 30 would make your first payment due December 1, but if you close Nov. 1 and pay the November interest then you wont have a payment due till January 1.
Some lenders will allow an interest credit at the table meaning you could close November 1st thru about the 6th and will receive an interest credit on the hud and still have a December payment due.
It all basically boils down to what you need to bring as cash to the table.
About FHA's - those are very important to close at the end of the month if you REFI or you are the SELLER in a sales transaction. For a refi you want to have the funding date by the first or you pay for interest for the new month. Thats the same for the sellers mortgage.
I thought that was the case with FHA, but it has been a while since I have done one.