CLOSING TIME
Closings can be hectic with dozens of forms to sign and legal terms flying around the table at a fairly high rate of speed. It's hard to keep your head on straight. Here are a few pointers that might make things go a little smoother
At the closing, the seller may request more time to vacate the house that you are buying. This is not uncommon, especially when the seller has yet to close on their new home. While you want to be accommodating, you will want to protect yourself by specifying that you will charge rent after the agreed-upon date that you will take possession. Some experts recommend holding a large portion of the sale proceeds in escrow until the seller has actually moved out of the property.
Keep in mind that some closing costs are tax deductible, including points, pro-rated mortgage interest and pro-rated property taxes. Other closing costs are not normally deductible in the year of the sale but may be added to the home's adjusted tax basis to reduce your tax liability when you sell. Check with your accountant to be sure about specific deductions.
Consider a home-protection plan to cover the major systems, especially if they're older. Sellers are often willing to share in the cost of such a plan but are not required to do so. Home Warranties are affordable with some costing only a few hundred dollars. They will offer varying levels of protection, so get information on what's available and choose what works best for you.
If you're well prepared prior to the closing and you've discussed any gray areas of concerns with your Realtor, things should proceed smoothly on closing day.
