Short answer:
– Best to close near the end of the month. For the buyer, the upfront interest is minimized, and for the seller, the daily expenses are slightly lower.
– Closing at the beginning of the month gives buyers more time to make their first mortgage payment and gives sellers flexibility to move or make a subsequent purchase.
– For many buyers and sellers, month-end closing provides the best balance between cost savings and convenience.
The best time to close on a home is usually near the end of the month, when buyers can minimize upfront interest and sellers can potentially pay fewer pro-rated costs. Understanding how timing impacts the closing process can help both parties save money, avoid delays, and plan next steps with confidence.
Whether you’re buying or selling a home in Seattle, Washington, Austin, Texas, or Miami, Florida, this Redfin guide explains the best time to close on a home and why choosing the right date can make a meaningful difference for everyone involved.
Why the timing of the closing date is important
Whether you’re buying or selling, the day you close on your home has more impact than the day the keys change hands. This directly impacts upfront costs, capital gains, prepaid interest, daily expenses, and the timing of mortgage payments and access to funds. Knowing how timing affects each side will help you create a closing date that works for everyone.
What happens if you close early in the month vs. late in the month?
Whether you close early or late in the month can have a significant impact on upfront costs, payment timing, and scheduling considerations for both buyers and sellers.
Month-end closing
Many buyers choose to close the transaction closer to the end of the month because they can reduce their prepaid interest. Mortgage interest rates are calculated daily, so a later closing means fewer days to pay interest and lowers the initial costs of closing for the buyer.
Example: Closed on March 30th
If you’re a buyer: You only pay upfront interest for a few days You’ll have less cash to bring to closing Your full first mortgage payment is typically due on May 1 If you’re a seller: You may have fewer pro-rated fees reimbursed to the buyer You may be able to close with a slightly higher net profit
Month-end closings are effective for buyers looking to conserve cash and sellers looking to maximize revenue. That said, lenders and title companies tend to be busiest at the end of the month, which can limit your flexibility if a problem arises.
Closing at the beginning of the month
Closing earlier in the month usually means higher upfront interest for the buyer, but it also means more time until the first mortgage payment is due. For sellers, closing at the beginning of the month gives them more flexibility when it comes to relocating or coordinating their next purchase.
Example: Closed on March 5th
For buyers: Prepaid interest must be paid for the majority of March Higher upfront costs First full mortgage payment typically occurs on May 1 For sellers: May require more prorated costs to be credited to buyer Often benefit from easier scheduling and more flexibility
This option may be attractive to buyers who want a breather before monthly payments begin, and sellers who need more control over timing.
Is there a “best” day of the week to close?
Timing is not just about the date, but also the day of the week. Many experts recommend closing mid-week (Tuesday through Thursday), as last-minute issues are likely to be resolved by the end of the week. Closing on a Friday or just before a public holiday is riskier as delays can take several days to deal with, potentially impacting move-in plans and access to sales proceeds.
Days to avoid when setting holidays
Any day is fine, but depending on the closing date, there is a higher risk if something goes wrong.
Fridays and days before holidays: If your office is closed or operating with limited staff, delays may take several days to resolve. Last day of the month: This is often the busiest day for lenders and title companies, giving them less flexibility to deal with last-minute issues.
Other factors to keep in mind
The closing date affects final closing costs for buyers and sellers, including prorated property taxes, homeowners insurance, HOA dues, and various fees. Personal schedules and life events such as job changes, lease expirations, school start dates, and simultaneous sales and sales can make a cost-effective closing date impractical. Month-end closings are often the busiest time for lenders and title companies, increasing the risk of delays. Sellers buying new homes often adjust closing dates to avoid temporary housing, rent-back agreements, and bridge financing. Closing timing affects tax planning because prepaid mortgage interest and property tax deductions are tied to the closing year. Closing may be delayed during seasons and holidays. Spring/summer market peaks, winter weather, and year-end holidays often delay inspections, evaluations, and processing, increasing the risk of delays. Closing on your home before or after December 31 will affect taxes (mortgage interest deduction, property taxes, seller’s capital gains) and resets such as insurance and HOA budgets.
How to choose the best time for home closing
The ideal closing date will depend on your priorities, such as minimizing upfront costs, coordinating sales and purchases, and avoiding schedule delays.
Your Priorities Best Strategies Minimize the cash needed at closing (buyers) Aim to close at the end of the month Want more time to make your first mortgage payment (buyers) Close early or mid-month Closely coordinate the sale and purchase of another home. Consider flexibility at the beginning of the month You need sales proceeds to fund the purchase You want to arrange the end of the sale before or on the same day as the purchase date You want a smoother schedule Avoid the 1st, 15th, or last day of the month. Choose a mid-week closing date Plan your deductions for the tax year Consider how prepaid interest and taxes decrease from year to year
Choose the right date to close your trade smartly
Choosing a closing date ultimately comes down to balancing costs and timing for both buyers and sellers. Closing later in the month reduces the buyer’s upfront costs and reduces the seller’s pro rata share. On the other hand, closing early may give you more flexibility when arranging a move or another purchase. Talking with your lender, Redfin agent, and title company will help you weigh the tradeoffs and choose a date that fits your budget and schedule.
FAQ: When is the best time to close on a home?
1. How many days before closing is the first mortgage payment due?
For buyers, the full first mortgage payment is typically due on the first of the month after closing, over a period of approximately 30 days. The exact timing will vary depending on the loan type and lender.
2. Will the closing date affect my property tax and homeowners insurance prorations?
Property taxes, insurance, and HOA dues are typically pro-rated by the closing date. Closing later in the month typically reduces the buyer’s upfront costs and the seller’s prorated credit, but the amounts vary depending on local rules and conditions.
3. If I’m selling one home and buying another, how does the timing of the closing affect my plans?
When buying and selling at the same time, it is important to adjust the closing date. Sellers often need sale capital to make a purchase, and buyers want to avoid temporary housing or bridging financing. To streamline the process, you typically need to sell first or complete both transactions on the same day.
>> Read: How to buy and sell a home at the same time
4. Are there any specific days that buyers and sellers should avoid at closing?
Avoid holidays on the 1st, 15th, or last day of each month. Lenders and title companies have warned that these busy periods can cause delays and impact occupancy for buyers and access to funds for sellers.
5. Is closing mid-month a good compromise for both buyer and seller?
Closing your accounts in the middle of the month will help you balance your balance. Buyers save on upfront interest compared to early-month transactions, and sellers benefit from easier scheduling and avoid month-end bottlenecks.
