Be Sure To Close On Time

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The deadline to close is fast approaching for those homebuyers who are trying to take advantage of the $8000 tax credit.

The contract to purchase had to be in place by April 30, 2010 and the sale must close by June 30, 2010.

That seems like plenty of time and barring any problems it is more than sufficient time to close a real estate transaction.

However, real estate closings can be tricky. There are any number of things that could potentially hold one up from issues with the buyers? mortgage approvals (which is happening rather too often right now as mortgage lenders are being more and more selective) to problems on the sellers side such as title issues or even problems with the house that show up in an inspection.

In order to avoid irreparable delays, you should schedule your closing for earlier in the month rather than later. After the 15th of the month, the first payment due on the mortgage will be due the month after the following month. For example after June 15, the first payment due will be on August 1. But prior to the 15th the first payment is due the following month. So if you close any time before June 15 your first payment will typically be due July 1. After June 15, you will bring in additional funds to pay for interest per day for the remaining days in June and the first payment will be due on August 1.

Either way, if you don?t happen to close by June 30, 2010 you will completely lose out on the tax credit so don?t delay. And plan ahead because unforeseen things can happen with real estate closings.