A friend said that includes a mortgage is usually the last week of the month. Is this true?

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We refinanced our mortgage last April and so far it has not already. We expect our officers to call for the signature of the doc loan. Now, a friend said since June has already begun, we must wait another three weeks because it usually includes loans few days before the end of that month. Is it true?

  1. Reply
    February 4, 2011 at 3:38 am

    Not true at all. They close whenever all the paperwork is done. No matter what day it is.

  2. Reply
    February 4, 2011 at 4:37 am

    No truth in that. Many loans are closed each month and they can’t all be held till the last week. The payments, of course, will be adjusted to be due in a reasonable time from the closing.

  3. Reply
    MJ Knows
    February 4, 2011 at 5:04 am

    Not true.

    There are a few reasons why your loan is not done yet.
    1.Your agent went out of business.
    2.Your agent could not finance the loan and is stringing you along.
    3.Your agent is waiting for documents from a 3rd party (appraiser, etc) and forgot about them and you.

    The average time to “do” a loan is 4weeks. That is from the time you submitted your application to the time it funds. Call your loan officer and find out what is going on. I would find another loan officer. One that keeps you updated on at least a weekly bases.


  4. Reply
    Michael Iarrobino
    February 4, 2011 at 5:11 am

    You can close any day (well any business day anyway). The reason most loans close at the end of the month is you generally pay the loan interest from the closing date to the end of the month, and if you don’t close near the end of the month that closing cost is therefore higher. So if you close the middle of the month you’d have half a month interest to pay at closing, while if you close near the end of the month it’s only a couple of days.

    It’s done that way so all mortgage payments are due on the first of the month. It certainly isn’t for the convinience of the borrower – I assume it is to make it easy to sell the loans to investors.

  5. Reply
    February 4, 2011 at 5:56 am

    It used to be true, but in’t anymore. Back when all mortgages calculated interest on the last day of each month, everyone tried to close on the last day to avoid interest.

    Today, most mortgages are either pro-rated or they calculate interest based upon the actual day of closing. Closings now take place all month long.

  6. Reply
    katie c
    February 4, 2011 at 6:23 am

    It is not true that you have to wait. Whatever day of the month you close, whether it is June 1st or June 30th, your first payment will still start August first. the difference is the interest. You will need to pay the interest at the closing for the month of June. So you could pay as much as 30 days of interest or just 1 day. It all works out the same in the end. So close when you are ready.

  7. Reply
    My Take on It
    February 4, 2011 at 6:52 am

    Shouldn’t it be approved if you are to close tomorrow?
    You should pose this question to your lender.

  8. Reply
    February 4, 2011 at 7:52 am

    Your approximate closing date is tomorrow but that doesn’t mean it will close. Please call your Escrow Officer or her assistant to find out the hold up on the loan. If you call your agent or the bank they will not give you an answer. Underwriter will approve a loan when documents are all in place and they follow the guidelines on that particular day.

  9. Reply
    February 4, 2011 at 8:20 am

    You need to talk to someone at the lender and find out what’s going on. Don’t call the broker or the loan officer. Call your processor. That’s the person who can help you.

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