Sept. 30 deadline approaches for home buyer's tax credit

The deadline is fast approaching for the federal tax credit for first-time homebuyers. Buyers who went into contract by April 30 of this year have until Sept. 30 to close the deal. Glen Head-based attorney Jeanne Reardon offers these tips to make sure your last-minute closing goes smoothly:

Check in with the title company

“In order for the title company to give you insurance, they do a search for outstanding liens, judgments or mortgages,” says Reardon. Make sure that search is already under way: It can take several days, and the title company won’t allow the sale to close without resolving those issues, she says.

Communicate with the bank

Give the lender as much notice as possible that you’ll need your documents ready in time for this closing date. Your attorney should find out if there are any hold-ups and work to iron them out quickly.

Do a walk-through

Inspect the house 24- to 48 hours before the closing and note any new problems that may have popped up since signing the contract. Discuss the cost of any needed repairs with the seller’s attorney, and come up with a solution so as not to delay the closing. “The seller could give a credit for that, or they can do an escrow agreement,” says Reardon. “The buyer can hold back that amount until the repair is made and then release the funds.”

Get your ducks in a row

“Make sure to have homeowner’s insurance,” says Reardon. “Even if you’re buying condo or coop, those don’t cover the contents or individual workings for the interior.”  Be sure to bring photo ID and certified checks or bank checks to pay any upfront closing costs.