How Much Leeway Before The Tax Credit Deadline?

“I’m planning on buying my first home this year. Since the closing deadline for the first-time buyer tax credit is June 30, how much leeway should I give myself in order to make that deadline?”

Most closings do occur on the scheduled date, but, unfortunately, delays can happen. When you’re getting ready to make an offer on a home, you’ll want to keep that June 30 deadline in mind and offer the seller a settlement date that will give you plenty of extra time just in case problems crop up. Although lengthy closing delays are fairly uncommon, inspection problems, paperwork errors, legal issues or other surprises can cause your settlement to be pushed back anywhere from a couple of days to a couple of weeks. Also, as the June 30 deadline gets closer, it may be more difficult to get the date of closing you want because a lot of other buyers will be trying to squeeze in ahead of the deadline and title and settlement companies will probably have a full load of closings already scheduled. One other important date you should keep in mind is the April 30 deadline to sign a purchase agreement on your new home. If you fail to make that deadline, your date of closing will be irrelevant as you must make both deadlines to be eligible for the 2010 tax credit. ∆