Why do most closings occur at the end of the month?

The end of the month is the most popular time for closings to occur on Spring Texas homes.  End of month closings are popular for two reasons. calendar

The first and primary reason is it reduces the amount of money buyers need to bring to the table in order to close. When you purchase a Spring Texas home there are numerous closing costs and prepaids associated with your real estate transaction.

One of the these costs is interest on the loan.  Your lender charges you interest on the loan from the day of closing to the end of the month in which the closing occurs.  The closer the day of closing is to the end of the month, the fewer days of interest you have to pay.

The second reason for the popularity of end of month closings is because the majority of apartment leases terminate at the end of the month.  Buyers want to limit the amount of time they are paying for two places.

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