Why Are Most Real Estate Closings Scheduled For the End of the Month?

West Bank real estate

Why are so many real estate closings at the end of the month?

Easy question!

At the closing, the home buyer pre-pays their mortgage interest for the month. The closer to the end of the month the closing is held, the less cash the buyer has to come up with out of pocket.

Pushing an act of sale date to the beginning of the month means the buyer must pre-pay all/the majority of that month’s interest. For some first time buyers, this can cause them to be a little short of cash to close, causing further delays.

Buying a home? Ask your agent about the best closing date to write in your offer.

 

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