1st time going through the mortgage closing for my 4PLEX

7 Replies

Just now signed the closing docs and the funding has to happen on Monday. I want it to close on Tuesday or Wednesday though. Is it possible for me to hold the funding on Monday instead do it on Tuesday? OR if we fund on Monday - the title company is saying they can hold the disbursement & closing till Tuesday - is it possible?

I do not want immediate closing on Monday when we do funding as it will help shift my 1st payment due by a month. 

 

@Vlibhu Arya -  I mean, you should be able to close whenever you want (assuming the title company can oblige).  This is a better question for your title company

@Vlibhu Arya It doesn’t really shift your payment by a month.....if you delay a couple of days so your first “payment” is due Dec 1st, instead of Nov 1st, you’ll have to pay the interest for Oct at closing anyway.  This “first payment and prepaying the interim interest” is determined by your Funding date anyway, not the Closing day.

Originally posted by @Wayne Brooks :

@Vlibhu Arya It doesn’t really shift your payment by a month.....if you delay a couple of days so your first “payment” is due Dec 1st, instead of Nov 1st, you’ll have to pay the interest for Oct at closing anyway.  This “first payment and prepaying the interim interest” is determined by your Funding date anyway, not the Closing day.

 So either I can ask the lender to hold off the funding or I send my 20% down a day later perhaps?

@Vlibhu Arya You didn’t comprehend what I said.....


—If you do the way it is now, you have no payment at all until Nov 1, since you are closing on the last day of the month...which will include the interest due for Oct.  (Mortgage/interest payments are paid in arrears at the end of the month. 

—If you delay it for couple of days so that your first payment is Dec 1st (interest for the month of Nov)....you will have to prepay the interest for Oct AT THE CLOSING, in advance. 

Hence no advantage to you....you will end up making the payment that would be due on Nov 1 anyway, except as part of your closing, one month earlier. 

In other words.....let it go. 

Agree with the others that it doesn’t matter. BUT if you want to delay by a day or two, you can... but give everyone at least a few days notice. No one will be happy with you if the bank draws up all the paperwork and the title company has everything ready to go - then they have to update all the docs with a new date. I’d imagine the bank might drag its feet (or just have slow turnaround) and take a few days to reschedule the closing.

Originally posted by @Wayne Brooks :

@Vlibhu Arya You didn’t comprehend what I said.....

—If you do the way it is now, you have no payment at all until Nov 1, since you are closing on the last day of the month...which will include the interest due for Oct.  (Mortgage/interest payments are paid in arrears at the end of the month. 

—If you delay it for couple of days so that your first payment is Dec 1st (interest for the month of Nov)....you will have to prepay the interest for Oct AT THE CLOSING, in advance. 

Hence no advantage to you....you will end up making the payment that would be due on Nov 1 anyway, except as part of your closing, one month earlier. 

In other words.....let it go. 

 If I close the last day of the month, I'm currently paying interest for Oct. If I delay by a day or two then I guess will I be liable for 1 additional month interest i.e. Nov also?? And my first payment will be due on Dec 1.

If so my monthly payment would be only for the Interest which is little less than Principal + Interest?

Please advise if my understanding is correct?

Thanks

@Vlibhu Arya I’m not sure how to explain it any better than I already did.

You pay interest for every day you have the loan, no matter when your first “monthly scheduled payment is due”.  If you close as scheduled you’ll pay the interest for Oct on Nov1 with your first regular monthly payment.  If you close a couple of days later, then your first scheduled monthly payment will be Dec 1, for interest (and principal) for the month Nov but you will have to pay the interest due for the 29 days of October in advance at closing.  If you delay closing a couple of days, the title co will had to produce a New closing statement reflecting this and changes to the property tax proration And cause an additional 3 day delay due to requirements for having the final closing docs to all parties 3 days prior to closing.

Just close as scheduled.