Why close at the end of the month- selling house to builder

cfclarke · #1 (**permalink**) 03-02-2010, 10:32 AM

The builder of the house I am buying is also purchasing my home. We had intended to close on 2/26- but now it is going to be 3/10/10.

I understand why would want to close at the of the month- but forums I have read on this debate this.

The most you would pay even if you closed on the 1rst day of the month would be 100% of the total mortage payment correct?

I don't see what the benefit to closing at the end of the month is then, especially if you occupy the home at the time of closing.

The builder is buying our home; I do not intend on making my 3/1/10 payment that is due (I understand that the proceeds after selling to him will be less)

Can anyone describe advantage of closing on 3/30/10 as opposed to 3/10/10.

patrenia · #2 (**permalink**) 03-06-2010, 12:18 AM

Quote:

Originally Posted by cfclarke

The builder of the house I am buying is also purchasing my home. We had intended to close on 2/26- but now it is going to be 3/10/10.

I understand why would want to close at the of the month- but forums I have read on this debate this.

The most you would pay even if you closed on the 1rst day of the month would be 100% of the total mortage payment correct?

I don't see what the benefit to closing at the end of the month is then, especially if you occupy the home at the time of closing.

The builder is buying our home; I do not intend on making my 3/1/10 payment that is due (I understand that the proceeds after selling to him will be less)

Can anyone describe advantage of closing on 3/30/10 as opposed to 3/10/10.

I used to be in the mortgage business and I've never heard of this tactic. We used to have builders and real estate agents rushing us to close. I'm sorry...I wish I could be of more help

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