Quick Answer:
– Closing near the end of the month is best because it minimizes prepaid interest for buyers and slightly reduces prorated expenses for sellers.
– Closing early in the month provides buyers more time before the first mortgage payment and offers sellers flexibility for moving or a subsequent purchase.
– For many buyers and sellers, an end-of-month closing strikes the best balance of cost savings and convenience.
The best time to close on a house is typically near the end of the month, when buyers can minimize prepaid interest and sellers may owe fewer prorated expenses. Understanding how timing impacts the closing process can help both parties save money, avoid delays, and plan their next steps with confidence.
Whether you’re buying or selling a home in Seattle, WA, Austin, TX, or Miami, FL, this Redfin guide explains the best time to close on a house and why choosing the right date can make a meaningful difference for everyone involved.
Why timing your closing date matters
The day you choose to close on a home, whether you’re buying or selling, affects more than when the keys change hands. It directly impacts upfront costs, sale proceeds, prepaid interest, prorated expenses, and the timing of mortgage payments or access to funds. Knowing how timing impacts each side helps create a closing date that works for everyone.
What happens when you close early vs. late in the month
Whether you close early or late in the month can have a meaningful impact on upfront costs, payment timing, and scheduling considerations for both buyers and sellers.
Closing at the end of the month
Many buyers choose to close near the end of the month because it can reduce prepaid interest. Since mortgage interest is calculated daily, closing later means fewer days of interest due and lower upfront closing costs for buyers.
Example: Closing on March 30th
- For buyers:
- Owe prepaid interest for just a few days
- Bring less cash to closing
- First full mortgage payment is typically due on May 1
- For sellers:
- May owe fewer prorated expenses back to the buyer
- Can sometimes walk away with slightly higher net proceeds
End-of-month closings can work well for buyers trying to conserve cash and sellers focused on maximizing proceeds. That said, lenders and title companies tend to be busiest at month-end, which can limit flexibility if issues arise.
Closing at the beginning of the month
Closing earlier in the month usually means higher prepaid interest for buyers, but it provides more time before the first mortgage payment is due. For sellers, early-month closings can offer more flexibility when coordinating a move or another purchase.
Example: Closing on March 5th
- For buyers:
- Owe prepaid interest for most of March
- Have higher upfront costs
- First full mortgage payment is typically due on May 1
- For sellers:
- May need to credit the buyer for more prorated expenses
- Often benefit from easier scheduling and more flexibility
This option may appeal to buyers who want extra breathing room before monthly payments begin and sellers who need more control over timing.
Is there a “best” day of the week to close?
Timing isn’t just about the day of the month, the day of the week matters too. Many experts recommend closing mid-week (Tuesday through Thursday), since last-minute issues are more likely to be resolved before the weekend. Closing on a Friday or right before a holiday can be riskier, as delays may take several days to address, potentially affecting move-in plans or access to sale proceeds.
Days to avoid when scheduling a closing
While any day can work, some closing dates come with higher risk if something goes wrong.
- Fridays and days before holidays: Delays can take days to resolve if offices are closed or operating with limited staff.
- Month-end dates: These are often the busiest for lenders and title companies, leaving less flexibility to handle last-minute issues.
Other factors to keep in mind
- The closing date impacts final closing costs for buyers and sellers, which include prorated property taxes, homeowners insurance, HOA dues, and various fees.
- Personal schedules and life events like job changes, lease expirations, school start dates, or concurrent buying and selling can make cost-efficient closing dates impractical.
- Month-end closings are often the busiest for lenders and title companies, increasing the risk of delays.
- Sellers buying a new home often align closing dates to avoid temporary housing, rent-back agreements, or bridge financing.
- Closing timing impacts tax planning because prepaid mortgage interest and property tax deductions are linked to the closing year.
- Seasonal and holiday periods can slow closing. Peak spring/summer markets, winter weather, and year-end holidays often delay inspections, appraisals, and processing, raising the risk of delays.
- Closing a house before or after December 31 affects taxes (deductible mortgage interest, property taxes, and capital gains for sellers) and resets like insurance and HOA budgets.
How to choose the best time to close on a house
The ideal closing date depends on your priorities, whether you’re focused on minimizing upfront costs, coordinating a sale and purchase, or avoiding scheduling delays.
| Your priority | Best strategy |
| Minimize cash needed at closing (buyers) | Aim for an end-of-month closing |
| Want more time before first mortgage payment (buyers) | Close early or mid-month |
| Selling and buying another home | Coordinate closings closely; consider early-month flexibility |
| Need sale proceeds to fund a purchase | Align sale closing before or on the same day as purchase |
| Want smoother scheduling | Avoid the 1st, 15th, or last day of the month; choose a mid-week close |
| Planning around tax-year deductions | Consider how prepaid interest and taxes fall by year |
Closing smart and picking the right date for you
Choosing a closing date comes down to balancing cost and timing for both buyers and sellers. Closing later in the month can lower buyers’ upfront costs and reduce seller prorations, while earlier closings may offer more flexibility when coordinating a move or another purchase. Talking with your lender, Redfin agent, and title company can help you weigh the tradeoffs and choose a date that fits your budget and timeline.
FAQ: Best time to close on a house
1. How many days before the first mortgage payment is due after closing?
For buyers, the first full mortgage payment is typically due on the first day of the month after closing, following an approximately 30-day period. Exact timing varies by loan type and lender.
2. Does the closing date affect property tax and homeowners insurance prorations?
Property taxes, insurance, and HOA dues are typically prorated by the closing date. Closing later in the month usually lowers buyer upfront costs and reduces seller prorated credits, though amounts vary by local rules and terms.
3. If I’m selling one home and buying another, how does closing timing affect my plans?
Coordinating closing dates is crucial when buying and selling simultaneously. Sellers often need sale funds for their purchase, and buyers want to avoid temporary housing or bridge loans. Streamlining the process usually involves selling first or closing both transactions on the same day.
>> Read: How to Buy and Sell a House at the Same Time
4. Are there certain days of the month that buyers and sellers should avoid when closing?
Avoid closing on the 1st, 15th, or last day of the month. Lenders and title companies warn these busy dates can cause delays, impacting buyers’ move-in and sellers’ access to funds.
5. Can closing mid-month be a good compromise for both buyers and sellers?
A mid-month closing offers a balance. Buyers save on prepaid interest compared to early-month closings, and sellers benefit from easier scheduling and avoiding month-end bottlenecks.