With the first mortgage payment coming on the second month after closing, there can be some strategy placed on when you would like to close on your new home. If you are renting and need to give your landlord a two months notice, closing early in the month would allow you an extra month of not paying a mortgage on top of rent. The downside to this is your first payment will have extra interest. If you close at the end of a month, you will have a smaller first payment due to interest not accruing for almost two months.