End of month rush-

Since starting in this business eleven years ago there is a reoccurring phenomenon that continues to bother me… the end of month rush.

Even though properties are going into escrow year-round on various days of the month, there always seems to be an end-of-month rush as lenders and Realtors try to close-out their deals.

I’m sure the biggest cause of this phenomenon is that most rental leases are from the first of the month to the last day of the month.  It makes sense that if you’re a renter closing on a home, you wouldn’t want to pay rent and a mortgage payment for any over-lapping amount of time.

However, it is important to know that there is normally 30-60 days of lag time between closing escrow and the due date of the first payment mortgage payment.  Add into this equation the fact that a mortgage payment can be made up to 14 days after the due-date without a penalty, and that means there are generally more than 60 days from the close of escrow until a payment is considered late.

Unfortunately, even with this knowledge, lender, Realtors, and escrow-officers continue to line-up deals to close at the end of the month.

This creates a back-log of files going through the underwriting process, to docs and back to the lender for funding.

In this challenging market, if you want the best chance of closing your transaction on-time, schedule the close of escrow between the 10th and 20th of the month.  I guarantee this small change to the escrow time-line will help create a less stressful transaction for buyers, sellers and real-estate professionals.

As always, if you have any questions, contact me at TrustYourLender@gmail.com