Closing on the last day of the month vs the first day of the next month has little tax consequence. It would mean one less day of interest you can write off as an itemized deduction at the end of the year. The main factor in waiting after the last day of the month is how much pre-paid interest you will pay out of pocket at the closing table. Example; Close on Jan 31st , pay 1 day of interest on the full loan amount, make your first installment payment on March 1st. Close on Feb 1, pay 28 days of interest on the full loan amount but your first installment is due April 1st. It's pay me now or pay me later. Some lenders will make exceptions if you close on or before the 5th of the month. You'll just need to talk to your mortgage officer about it.