We don’t always have a choice. Usually the circumstances and timelines of the transaction will dictate the necessary closing date. But when there is flexibility, is there an IDEAL time of the month to close? Yes, in my opinion, the middle two weeks of the month are best. Here’s why:
AVOID end of month closings when possible! EVERYONE is trying to close before the end of the month. This is consistently a bottleneck period. Performance for most involved in the process is measured on MONTHLY production. Commissions, bonuses, and financial reporting are at stake! There is a push to close as many transactions as possible before month end. Closing departments get swamped, turnaround times slow down, and inevitably service levels suffer. If you can avoid this ‘crunch time’, you have a better chance at a smooth and timely closing.
The first week of the month can often be challenging as well. This period is usually calmer than month end, but sometimes suffers from the spillover effect of the month-end backlog. The closings scheduled for the first week of the month should receive their finishing touches the week prior. Unfortunately, that finishing period sometimes gets pushed back due to the month end bottleneck – resulting in a scramble to meet the timing on these early month closings.
Therefore, when there is a choice, the middle two weeks of the month can work best! Lenders tend to have less backlog during this period, and their closing departments can devote more time and attention to your important closing. We find there are less errors and delays during this time, and would therefore choose this as the best time of the month to ensure a smooth and timely closing!