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Old 11-21-2008, 09:28 PM
 
2 posts, read 17,147 times
Reputation: 10

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I'm buying a home in California that needs about 2 months worth of work done before move in. I would prefer to close after the 1st of the month so I have almost 2 months til my first mortgage payment is due. (I know you pay more interest but seller is paying my closing costs, therefore more closing costs for them but less from me) My broker is telling me I would have to sign ON or AFTER Dec. 1st for my 1st payment to be due Feb. 1st-- but my broker is telling me that I could sign on Wed., Nov. 26th (the day before Thanksgiving) and the loan would not fund until Monday, Dec. 1st so my payment would actually still not be due until Feb. 1st... (He's saying Thursday & Friday are holidays for the title company & the recording office) Does anyone know which is true? The day you sign, the day the loan funds or the day it is recorded?
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Old 11-21-2008, 10:24 PM
 
Location: Sacramento
2,568 posts, read 5,838,497 times
Reputation: 1905
When do you want to sign? If nothing will happen over the holidays why not just wait till Monday. I would.
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Old 11-21-2008, 10:51 PM
 
2 posts, read 17,147 times
Reputation: 10
I don't really care when I sign, but I know I want my first payment to be due on Feb. 1st... I'm told that according to california state law that it depends on when you close... but which part of the closing process? California is apparently an "escrow state" which I was told means that 1 day to sign, 1 day to release funds & 1 day to record property & get the keys... all that could be expedited as a "special close" but it supposidly it would still take 2 days...

I would prefer to wait til Monday to sign ONLY because it's definitely going to make my payment due on Feb. 1st... but since I have to close by Dec. 2nd per contract & california takes 3 days to potentially close then my RE agent is saying I have to sign Wednesday to fund Monday & record Tuesday... ???
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Old 11-22-2008, 10:24 PM
 
Location: Colorado Springs, CO
103 posts, read 430,209 times
Reputation: 27
I used to be an escrow officer... think I can help you out!

I agree that you need to sign Weds in order to fund Monday and record on Tues. Reason being, the escrow company and your lender need time to review the signed documents, make all their certified copies etc. As far as your payment goes, make sure that the Note specifies the first payment as Feb 1st 2009. If you fund Monday, you will owe interest from Monday until 1-1-09. That would make your first payment due Feb 1 as with a mortgage you pay in arrears. So a full months payment....which you said the seller is paying for your closing costs. Is your credit for recurring and non recurring costs?? If the credit is only for non recurring closing costs, some lender's will not allow the interest owing to be part of what the seller pays. Some lenders don't care either way.... just something to toss out there.

All that to say...look at the Note in your loan documents (the security instrument..generally three pages long)... make sure the first payment due is Feb 1 2009 and you should be good to go...

Lemme know if you need anything else.
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Old 11-24-2008, 09:50 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 18,532,188 times
Reputation: 6356
Exactly what CAtoCO said. However if you have any doubts, ask your escrow agent and lender. Most real estate agents don't get this close to the closing process.
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Old 11-25-2008, 09:44 PM
 
Location: Colorado Springs, CO
103 posts, read 430,209 times
Reputation: 27
Hope everything turns out as you want it to. Have a Happy Thanksgiving and a smooth closing!
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