Why Choosing the Right Closing Date Matters
Does Picking the Right Closing Date Matter?
Choosing the right closing date is crucial to all parties involved – real estate agents, title companies, lenders, and, most importantly, the buyer. The closing process is undoubtedly stressful, but it doesn’t have to be when real estate agents work as a guide to help homebuyers choose the best date possible with these tips. Remember, the Louisiana Residential Agreement to Buy or Sell states, “Any change of the date for execution of the Act of Sale must be mutually agreed upon in writing and signed by the seller and the buyer,” so choose wisely when submitting or accepting an offer.
Avoid Closing on a Friday
Fridays are the busiest day of the week for most people, and this doesn’t exclude those in the real estate industry. The last day of the workweek is a busy day for both title companies and lenders. Delays are more likely to happen, potentially putting off closing until Monday (a whole three days later!). When your client is choosing a tentative closing date, advise them to choose a day other than Friday. If they insist on a Friday, suggest a morning closing time.
Close a Day or Two Before the Last Day of the Month
Another date you should tell your client to avoid is the last day of the month. The last day of the month is always the most popular closing date for title companies, and appointment availability is limited during the last week of the month. If a title company is booked with closings on the last day of the month, it is more likely that they’ll have to push the closing date to the next month.
Typically, a buyer would want to choose to close on the last day of the month to save a little more money on interest. Closing on this date, however, is particularly stressful for both title companies and lenders because it leaves no room for delays or errors. Closing a day or two earlier increases the costs minimally, but it allows for a more relaxed closing experience.
Think Twice Before Closing Before a Major Holiday
The holidays, especially Christmastime, is a generally stressful time for all people preparing for the end-of-the-year wrap-up parties and welcoming the new year. Although buyers may want to start their new year in their new home, it’s best if they resist the temptation.
Around the holidays, schedules will be harder to line up with all who are involved in the closing process since many are taking time off for the holidays. Not only are schedule conflicts more likely to happen, but so are mistakes with all the added stress. Real estate agents should advise homebuyers to be mindful of this before choosing a closing date during the holidays.
Coordinate Dates with Scheduled Moves/Utilities for Buyer
Real estate agents and homebuyers should coordinate the date of the scheduled move and the date that the utilities will be hooked up before settling on a closing date. No homebuyer wants to get the key to their new dream home just to find that their utilities haven’t been turned on yet. Strategically help them plan on a closing date that will occur after the utilities are supplying a home with power.
Communicate with Mortgage Lenders
Homebuyers need to communicate with their lender before choosing a closing date. Mortgage lenders have an intensive process that requires the coordination and participation of various individuals.
Most people schedule the closing date for 30-to-45 days after the offer has been accepted – this time allows space in the case of unexpected events. These events include additional documentation requests or last-minute discoveries of a potential issue in the home. It’s also important that the closing occurs in the time before the lender’s loan commitment expires. If dates don’t line up accurately, a buyer may have to negotiate a new rate or seek approval on the loan again.
Have a Smooth Closing Experience with TitlePlus
Our team at TitlePlus does everything possible to ensure an enjoyable closing experience for all parties involved – clients, real estate agents, and mortgage lenders. Reach out to us for more ideas, tips, and tricks on how to speed up the closing process, call TitlePlus today!