Mortgage Minutes

This session of Mortgage Minutes provides our readers with some good information about closing dates.

Why Closing Dates Matter

Let’s talk about cash flow and closing dates.  Most home buyers want to have as much cash as possible to buy things for their new home after loan closing, and the closing date you choose can make a difference when it comes to cash flow. This is because your closing date impacts when your first mortgage payment will be due to the mortgage company. For example, if you close your loan on July 30, your first mortgage payment will be due at the first of September. However, if you push the closing date just two days to August 1st, your first mortgage payment will not be due until the first of October. This gives you an extra month (September) with no mortgage payment. Many times, people use this extra cash to cover rent on an expiring lease, or like we mentioned when we started this discussion, this cash can come in handy for new window treatments, accent rugs, and other new decorator items for your new home.

As we can see, the closing date determines when your first payment is due. It is very important to pay attention to this detail when making your contract offer on your new home. The contract includes a date that must be met to close the loan. The wording will generally state the closing must occur on or before X date. Pay attention to this date, and make sure it coincides with your cash flow plans to get that extra month with no mortgage payment. This date is negotiable, so do work with your realtor to make sure the date on the contract meets your needs, and enjoy the extra cash!

Please feel free to contact me if you have any questions or would like help getting a new mortgage or refinancing your existing mortgage to take advantage of the current rate environment.

Brian Bazar, Sr. Mortgage Banker

NMLS# 1969754

PH 817-403-9181 


402 E Trunk Street, Suite G1, Crandall, Tx 75114

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With over 35 years in the banking and mortgage industry,  Brian is recognized as an industry expert. 

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