Everybody Needs Closure

One thing that all buyers have to consider, particularly first time buyers, is when closing will be. This seems like a simple issue in a contract, especially since buyers and sellers typically agree on the closing date. But there are still three things of importance to consider as a buyer.

First, remember when writing your contract that when you’re a first time buyer you’re probably renting right now, so you’ll want to schedule closing coinciding with the end of your lease or at least when you and your landlord have agreed to terminated. This can be sticky sometimes because if a closing date is delayed, at the end of a transaction you don’t want to become homeless. You definitely want to check on this issue before you even write the contract, at least to make sure that you aren’t paying a rent while moving into a new home, or so that you don’t end up homeless for a week or two before you get to move into your home.

Secondly, closing dates can often impact the amount of closing costs you have. Since closing costs include prepaid interests, that is, interest remaining of the month between closing and the last day of the month, and most people try to close at the end of the month to avoid those high closing costs. While this may not be possible for all people or some may not want this, keep in mind that it will have an impact on the settlement payment.

Thirdly, there’s simply the logistics of moving. Everybody wants to move at the end of the month, and that means that everyone’s going to want a moving truck or moving services during this time. This means that either price is going to be higher, or services might not be available for that time. There are also needs to be some flexibility in closing dates. If a loan gets delayed or a seller wants possession after closing, this will all have an impact on moving.

So, this seemingly simple part of the contract, the date on which you close, can have a real and very large impact on the purchase. Just like all other parts of the contract, pay very close attention and stay consciously thinking about the impact that this will have on you.

For more information about this topic and all other aspects of buying your first home, visit us on the web at www.springfieldfirsthome.com, or simply call or text us at 417.872.9222.