What is the best time to close San Jose Close house? Starting of month, end of month or middle month. How does it affect the first?
However in Colorado, the amount of cash you need to bring to closing as a Buyer is typically smaller the closer you are to the end of the month. Why is that? Because the mortgages all work off of calendar months...so if you Close house on the 28th of a 30 day month, then you bring three days of mortgage interest to the closing table (for the 28th, 29th, & 30th). If you close on the 15th of a 30 day month, then you will need to bring 16 days of mortgage interest to the closing (the 15th through the 30th). Your first payment will become due at the end of the next calendar month.
As others have mentioned, taxes, homeowner association dues, water/sewer, etc will all be prorated for the number of days in the month so there may be a difference in the amount but there is no advantage given to the Seller or the Buyer for these types of expenses.
For a seller with an FHA loan, there are some ramifications for certain kinds of loans - some loans require that if the closing occurs on any day of the month, the loan interest for the entire month still needs to be paid by the Seller - so, for a Seller with an FHA loan they would rather Close house on the 30th of one month rather than the 2nd of the subsequent month (because they would then have to pay interest for the entire month). Most (maybe all) conventional loans do not have this characteristic.
Finally as others have mentioned, I try to avoid Close house on Fridays, the day before a holiday, and the very last day of the month (because there tend to be so many closings on the last day of the month and the closing companies get jammed). I hope that helps.