| The first-time home buyer $8000 tax credit expires on | | | | closing time on that day. Once again, good luck! |
| November 30, 2009. If you fail to plan properly, you | | | | Since Thanksgiving is out, we look to Wednesday, |
| may jeopardize your ability to cash in on the benefit. | | | | November 25. This is the day before Thanksgiving and |
| Please consult with your attorney, accountant, lender | | | | many companies work only a half day. However, a |
| and Realtor to address the process of closing on your | | | | morning closing is a good option. |
| home. Let's explore the factors that will affect the | | | | Since most title attorneys do not start the title work |
| logistics and the realistic timeline in the month of | | | | until a week or two before closing, you must allow for |
| November. | | | | three business days to solve minor title and rate lock |
| November is a busy closing month in many markets | | | | issues. This pushes the date back to Friday, November |
| and there will be a dramatic increase in the number of | | | | 20. |
| transactions due to the deadline. Most closings are | | | | If you are a buyer and do not have a property under |
| scheduled at the end of the month due to pre-paid | | | | contract consider the following: |
| interest (so lenders can "service loans" at the beginning | | | | |
| of the month), buyer's availability of funds and lease | | | | 1. Short sales should not be considered as it is highly |
| terminations. | | | | unlikely that you will receive approval in time to close. |
| The "closing" is defined as the date the transaction is | | | | 2. Be careful purchasing bank owned properties as |
| recorded in the Registry of Deeds (consult your | | | | they have a higher incidence of title issues that could |
| accountant). In most states this requires a manual | | | | delay the closing past the deadline. |
| process by individuals waiting in line to process the | | | | 3. Negotiate the closing dates with "time being of the |
| paperwork. Don't anticipate that the Registry will "staff | | | | essence" so that you have leverage for the scheduled |
| up" to meet the demand or extend their hours. Most | | | | date (consult an attorney). |
| loans require "funding approval" by the lender prior to | | | | 4. Be aware of the occupancy dates and the |
| recording the documents. Be aware of the time zones | | | | availability of moving companies in your area. You |
| which can delay the process by 3-4 hours. | | | | could consider closing earlier in the month and allowing |
| The closing (signing papers) typically takes a minimum | | | | a short term lease to the Seller (consult an attorney) if |
| of one hour (if everyone is on time). Good luck in | | | | they will not move mid month. |
| scheduling a morning closing time which is necessary | | | | 5. If you do not have a Buyer's agent, seek proper |
| to have enough time to record the documents. So, we | | | | council to obtain the proper advice. |
| have effectively eliminated Monday, November 30 as | | | | Now is the time to seek the advice of industry |
| a target date for closings. Weekends are not an | | | | professionals and express your concerns about the |
| option, so now we look to Friday, November 27, the | | | | deadline. Proper planning will insure that you realize the |
| day after Thanksgiving. Confirm with the title attorney, | | | | benefits offered in the stimulus package. |
| lender and the registry that they will be open and can | | | | For more information on the first-time home buyer tax |
| conduct business. If they are, everyone will want a | | | | credit visit Virtual Homes Real Estate. |