When is a good time to close

Mortgage Myth #1: It is best to close my transaction at the end of the month.
Mortgage Realty # 1: Save Your clients time and money with an interest credit!

Many agents & buyers believe it is best to settle at the end of the month in order to save money on pre paid interest.

As you know, the lender charges interest at closing from the day you close until the end of the month. Because of this, the later in the month you close, the less money you would come out of pocket with.

However, at Prosperity Mortgage, we offer the buyer an interest credit if they settle earlier in the month. This will allow the buyer to bring LESS cash to close and not have to worry about squeezing in between 10 other settlements on the last day of the month. It will allow agents to avoid the last minute delays and backlogs that are sometimes associated with end of month lender clogged pipelines and allow you to offer an extraordinary customer experience every time. Here’s how it works:

Settlement Date: 7/3/2012

Most lenders will collect 29 days of interest at closing through 7/31/2012 with the First Mortgage payment being due 9/1/2012.

Prosperity Mortgage customers can choose a first payment on 8/1/2012 and actually receive a credit for 2 days of interest (July 1st and 2nd) at closing. This enables the customer to come out of pocket with less money spreading these costs out over the first month of home ownership rather than upfront. This can be a life saver for cash strapped clients or those not wanting to deal with an end of month closing.

Prosperity can offer an interest credit on conventional loans if the loan funds on or before the 10th of the month. Talk to your Prosperity Mortgage Consultant for more details.

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