Which day should you choose for Closing Date?

To many of you, this title might look silly, but I can't even tell you how many times I've heard and been a witness to not so nice stories about "closing date" trouble.

What is the "closing date" ?.

“Completion date” – among regular people knows as “closing date”, is the date when the lawyer will transfer title to Buyers’ name and they will take a legal possession of the property. You will get the keys for your new home and the new chapter of your life will begin. If that day will go smooth or not, in big part depends on your planning. Listed below are the dates/days that, in my opinion” are definitely not good to chose.

LIST OF A “NO-NO DATES”

1. JUNE 30^th !...This date is considered THE WORST day of the year by lawyers and banks!

That is a date with THE MOST real estate transactions transfers in a calendar year. Would you really want to close on that day?? The lawyers are overwhelmed with amount of deals they need to close, so in all due respect, how would you expect them to treat your transaction closing  as the “special” one?

2.  LAST FRIDAY OF THE MONTH! It will not be as busy as June 30^th, but it will be close! Most of the closings are list Friday of the month.

3. LAST DAY BEFORE LONG WEEKEND! If something goes wrong, you will be stuck in the truck for 4 days minimum.

So, what should you choose? Here is my advice:

FOR FIRST TIME HOME BUYERS

I assume you are currently renting and need to give 2 full months notice, so following is the list of dates/days you shouldn’t choose for the closing date.

1. Avoid closing on the same day as your last day of the rent. It is better if you have at least few days for you to move slowly into your new home. That way you wont need to wait in the truck until the lawyer calls you to go and pick up the keys, especially if you have children!
2. Avoid closing on Friday or last day before Long Weekend!  If something goes wrong, you will need to wait until Monday or first working day if it is a long weekend, for bank and lawyers to resolve the problem. Since weekend is there, you will end up paying more for postponing closing, for truck rental, hotel etc.

3. Avoid closing before 15^th of the month (if your month rent due is 1^st ), unless you are planning to renovate, paint etc. Why pay for almost whole month if you don’t need.

FOR PEOPLE THAT ARE BUYING AND SELLING

1. Avoid closing on the same day!.

Try to get a bridge mortgage! It is better if you have at least few days for you to move slowly into your new home. That way you wont need to wait in the truck until the lawyer calls you to go and pick up the keys, especially if you have children!

2. Avoid closing on Friday or last day before Long Weekend! To repeat myself, if something goes wrong, you will need to wait until Monday or first working day if it is a long weekend, for bank and lawyers to resolve the problem. Since weekend is there, you will end up paying more for postponing closing, for truck rental, hotel etc..

Please look few steps ahead when making this decision. Would you need to renovate? how long will it take? Ask your friend in real estate to use their contacts to try and determine how many days they will need to do it, before you make a final on closing date.

If the home you really, really, really want has a date that is not good for you, you will have two options. Either accept their date, and hope that everything will be ok or, if the price is right, they might even accommodate your needs.

Good luck in your new home!