Buying a house is an exciting and nerve-wracking journey. This is because it involves many moving parts and calculations, including mortgage rates, realtor commissions, down payment amounts, and tax considerations. The period between offer acceptance and mortgage signing can be a stressful time.
Given the price point of real estate transactions, you’ll want to negotiate the best terms. With this in mind, you’re likely to wonder, “What’s the best and worst day to close on a house?” Although it’s essential to allow for flexibility during the closing process, the reality is, some days might be better than others to close a real estate transaction.
Read on to learn about the best and worst days to close a house.
Breaking Down the Numbers
The best day to close on a house is ultimately subjective, depending on the individual’s circumstances and preferences. For some, closing at the beginning of a month may be advantageous in order to have more time to settle in before the next month’s mortgage payment is due. Others prefer to close towards the end of the month to save on interest charges.
If you’re currently a renter and you’re in the process of buying your first home, then the best day to close would be about a week before your lease is up so you can easily move without having to pay twice the housing the costs.
Of course, in today’s environment where interest rates have been on the rise, closing quickly has been a huge advantage. This is because interest rates have been rapidly trending upward and your lender usually can’t lock your rate in for long.
On the other hand, the worst days to close on a house tend to be around major holidays and during peak vacation season, because these times of year are notorious for causing scheduling delays. Specifically, closing around holidays can make it difficult to contact the various parties involved with your transaction, which include your lender, title company, real estate agent, and/or appraiser.
Best Days of the Week
When it comes to the best day of the week to close on a house, most buyers and sellers would prefer a Friday. This is because it gives both parties involved the weekend to move in or out without taking time off work. Lenders and title companies also tend to have more staff working on Fridays, making the closing process smoother and faster.
However, as mentioned above, avoiding major holidays, is just as important. These times of year can cause delays and increase stress levels for both parties involved.
While there is not an “official” worst day of the week to close on a house, Mondays tend to be the most stressful and least desirable because there are lots of last minute requirements to close on a house and many professionals won’t be in office over the weekend. Additionally, banks are often closed over the weekend, which can make it more difficult to wire in (or otherwise transfer funds) for your down payment.
Ultimately, Tuesday through Friday are all popular days for closing on a home. These days of the week are reliable choices for ensuring a seamless and successful transaction.
Factors Influencing Your Date to Close
The best day to close on a house is when you can minimize your housing costs, have maximum access to the professionals assisting you with the closing process, and can easily transfer funds. It could be any day of the week as long as it meets these criteria.
If you want to be strategic and save some money on the purchase price, you might consider asking the seller when it would be best for them to close. If you can work within their logistical constraints—such as when they plan to move out of town, need to start a new job, or will be closing on their new place—then they might just prefer your (lower) offer over others they have in hand.
Of course, the worst day to close a house is when either the buyers or sellers are overwhelmed. This can be caused by holidays, the start of the school year, needing to kick off a new job, travel conflicts, or a wide range of other reasons.
Ultimately, choosing a day that works best for both parties is crucial when it comes to achieving a smooth and stress-free closing process.
How Seasonality Affects the Best and Worst Days to Close
Next, there’s the importance of seasonality. In the real estate world, the spring tends to be a time where this is a lot of available inventory to buy, but the downside of this time of year is that it is also associated with strong prices.
Thus, if you want to have the widest selection of houses to choose from, then buying in the spring is likely to suit your needs well. However, if you’re goal is to get the best price for what you’re acquiring, then the winter months will be a better match.
Personally, I love to buy between November to January, because housing prices tend to drop during these slow months of November, December, and January. It’s also common for properties to stay on the market longer during this time, because buyers get distracted by the holidays and the days are short, making people more likely to head home after work instead of shop real estate.
Simply put, fewer people want to move when it’s cost, snowy, and dark.
Given these realities, I’ve found that it’s more feasible to submit offers under asking price in the winter months and still secure the deal. Because my criteria for the best time to close is financially driven, I generally prefer to close during the winter months.
Ultimately though, the best day to close on a house is the one that is going to save you the most money. This means that understanding the market’s seasonality can significantly affect your success of closing on a home.
The Dos and Don’ts of Choosing Your Closing Day
As described above, the best day to close on a house is a matter of personal preference, but there are certain factors to consider to avoid buyer’s remorse. When you close on a home towards the end of the month, it can reduces the amount of prepaid interest and closing costs. This means you can minimize the money needed for the initial down payment and save on interest payments over time.
On the other hand, closing early in the month can mean paying more upfront costs and accrued interest. Therefore, it is essential to carefully consider the timing of your house closing.
It is also essential to have a final home inspection before closing to avoid any potential issues, which you should do well before your closing date because it may require repairs to be completed.
If you are not sure of the best time to seal the deal, you can always consult experts or agents from First Call Home Buyer. Professional advice is recommended when making the decision to close on your dream home.
Factors Influencing the Best and Worst Day to Close on a House
In conclusion, choosing the best and worst day to close on a house can significantly impact the home buying process. It is essential to consider factors such as interest rates, competition, and personal circumstances before deciding.
Simply put, the best day to close on a house is the one that will save you money while aligning well with your personal and professional life.
Happy house hunting!