The Worst Day to Close on a House (More Than You Think)

Are you in the process of buying a new home? While it's natural to feel excited about this milestone, it's important to be mindful of the challenges that come with it, such as selecting the right closing date. There is definitely a worst day to close on a house.

Choosing the wrong day can turn a seamless transaction into a nightmare of delays and added costs. In this article, we'll discuss the worst days to close on a house and why they can be problematic. So keep reading so you can avoid running into issues while buying your new abode!

What Is the Process of Closing on a House

Closing on a house is the final phase of the home-buying process, where all the necessary paperwork is completed, and the property ownership is officially transferred.

The closing process can often feel overwhelming, but with the assistance of a competent real estate agent, the process becomes more manageable. Typically, there are three essential phases involved in finalizing the sale of a house:

1. Signing the contract and paying the deposit
2. Inspecting the property
3. Closing the deal and transferring the title to the new owner(s)

Choosing the right time to close on a house is like choosing the cheapest time of year for tree removal. It makes a significant difference.

Understanding the Importance of Choosing the Right Closing Date

Choosing the right closing date can significantly impact your overall experience and financial well-being during the home-buying process. One crucial aspect to consider is the mortgage interest, as homebuyers are required to pay interest in advance for the remaining days of the month in which they close on their new property.

Saving money for a house is pivotal. By strategically aligning your closing date, you can synchronize it with your financial planning, making it an opportune time to maximize savings and minimize financial strain. Moreover, a suitable closing date simplifies coordination among lenders, real estate agents, inspectors, and attorneys, ensuring seamless communication and minimizing potential delays and complications in the real estate transaction process.

Moreover, a suitable closing date simplifies coordination among lenders, real estate agents, inspectors, and attorneys, ensuring seamless communication and minimizing potential delays and complications in the real estate transaction process.

For instance, adjusting your target timeline may be wise if you aim to close at the end of July but discover that many other buyers are also scheduled for closings around those dates due to high demand and summer vacations.

Avoiding the worst day to close on a house can prevent competition for attention from necessary professionals who may be servicing multiple clients simultaneously, leading to a smoother transaction process.

The Worst Days to Close on Your Home Purchase

Closing on a home purchase is a significant decision, and selecting the right day for it can make a difference in avoiding complications and hassles. Here are some days that are generally considered inconvenient for closing on your home:

End of the Month

Closing at the end of the month can present challenges due to increased demand and potential delays. Many buyers try to schedule their closings in the last few days of a month to minimize prepaid interest charges.

However, this can result in higher demand, leading to longer processing times and potential setbacks. So while closing towards the end of the month may help with budgeting by reducing upfront costs, it's essential to be prepared for possible delays and complications during this busy period.

Fridays

Although closing on a Friday might seem appealing, as it allows for a weekend to settle into your new home, it can be one of the worst days to close. This is because it often leads to longer wait times at each process stage.

If you close on a Friday, you may experience delays signing documents and receiving confirmation of funds transfers. Additionally, since many businesses are closed over the weekend, any issues that arise during the closing may have to wait until the following Monday or even longer, resulting in potential inconveniences and added costs.

Holidays & Long Weekends

Closing on a holiday or long weekend is generally not recommended. During these periods, many real estate-related businesses, such as title companies and brokerages, may be closed or have reduced staff.

This can lead to significant transaction delays and increased costs due to missed deadlines. For instance, holidays like Memorial Day weekend are when people often travel or take time off work, making it challenging to complete real estate transactions efficiently.

Busy Real Estate Seasons

The real estate market experiences peak seasons, typically from late spring through early fall, when demand for properties is high, and housing inventory is limited. Closing during these busy periods can be challenging due to intense competition and potentially higher mortgage rates.

If possible, it might be beneficial to wait until later in the fall or even winter when fewer people are actively buying homes. This can reduce competition for available properties and potentially lead to lower mortgage rates as well. The worst day to close on a house falls within these periods, so be mindful.

Risks & Challenges of Closing on the Worst Days

Closing on the worst days can bring about various risks and challenges. Below, we've discussed the challenges you may run into by closing on a bad day:

Potential Delays in Closing

Closing on a house sale during challenging circumstances can present various risks and obstacles that have the potential to cause delays in the closing process. These delays can be highly stressful, costly, and exasperating for buyers and sellers.

Numerous issues commonly contribute to these delays, including problems with financing, homes being appraised for less than anticipated, repair obligations, and errors in important documents such as the good faith estimate or loan application paperwork.

Furthermore, legal complications pertaining to title and deed can be intricate to resolve. They may account for approximately 11% of closings that experience delays, as reported by the National Association of Realtors (NAR).

Increased Costs & Fees

Closing on a house entails additional costs and fees, particularly if you opt for closing on a day with unfavorable conditions. On the closing day, you may be responsible for expenses such as attorney's fees, notary's fees, city or county fees, and taxes.

Moreover, delays during the closing process can result in unexpected expenditures you may not have anticipated. It's important to note that these costs can extend beyond immediate upfront payments and potentially impact your monthly payments in the future.

Missed Opportunities & Benefits

Opting to close on unfavorable days can result in missed opportunities and advantages for home buyers. Purchasing a home during peak real estates seasons, such as spring or summer, often leads to intense competition and inflated prices due to bidding wars.

Conversely, closing during quieter seasons may offer buyers better leverage for negotiation. Furthermore, selecting the appropriate day for closing can impact your mortgage interest rate. Generally, interest rates are lower during mid-week compared to Fridays or at the end of the month.

How to Choose the Ideal Closing Date

Finding the perfect closing date for your home purchase (and avoiding the worst day to close on a house) requires thoughtful consideration and effective planning. Here are some things to keep in mind while choosing the closing date for your home:

Communicate With Your Real Estate Agent

Open and regular communication with your real estate agent is key in determining the ideal closing date for your home purchase. Your agent possesses valuable insights and experience to guide you through potential challenges and can help you choose a date that accommodates all parties involved.

By establishing clear communication from the beginning, you can avoid potential delays or missing out on good opportunities. For instance, if you have specific time constraints due to work or family commitments, your agent can work with you to coordinate a closing date that aligns with your needs.

Consider Your Personal Schedule

Your schedule should also be a significant factor when selecting the ideal closing date. Evaluate your flexibility and commitments to determine what day would work best for you.

If you have a flexible work schedule or can take time off, a midweek closing might be the most suitable option. This allows you to handle any unexpected issues during the closing process without disrupting your work routine.

Discuss With Your Mortgage Lender

In addition to your real estate agent, it's essential to involve your mortgage lender in discussing your closing date. They can provide valuable input based on their workload and processing times.

Consulting with your lender ensures that they have adequate time to complete the necessary paperwork and finalize the loan before the agreed-upon closing date. Collaborating with your lender helps streamline the process and reduces the risk of any last-minute complications.

Consider Market Conditions & Timing

Lastly, consider the current market conditions and the timing of your home purchase. Research whether it's a buyer's or seller's market, as this can impact the availability of homes and the competition you may face.

If possible, consider closing during a period that aligns with a slower season or when there’s less competition. This could provide better negotiation power and more favorable terms.

That’s the Worst Day to Close on a House

To sum up, selecting the ideal closing date for your home purchase is a vital step in minimizing risks and preventing unnecessary delays. Avoiding the worst days can help you steer clear of potential complications and additional expenses.

To choose the perfect closing date, communicate openly with your real estate agent and consider your schedule and commitments. It’s essential to ensure that all necessary inspections, mortgage lending requirements, and other crucial factors are addressed and in order well before the designated closing day.

By carefully considering these factors and planning ahead, you can navigate the closing process smoothly and enjoy a successful and stress-free home purchase. Avoid the worst day to close on a house and you'll be happy.

You'll Also Enjoy:

• How to Prove Residency Without Bills in 9 Ways
• What Does Unimproved Land Mean? What to Know
• Do You Tip Furniture Delivery Guys & How Much?
• When Was My House Built? 7 Ways to Find Out
• What is a Bulkhead in a House? Hiding & Providing