November 30 deadline for tax credit - you'd be better off closing earlier

Don't let your Thanksgiving holiday cost you this year!

November 30 is approaching quickly.  Many first-time home buyers are scrambling to find a home and get a loan closed by that November 30 deadline to qualify for the $8,000 first-time home buyer tax credit. 

Perhaps some of them should be rethinking that date.  So far, there is no word out there that the November 30 deadline will be extended.

November 30 falls on a Monday, following a four-day Thanksgiving holiday.  Why does this matter?

First of all, in many states, the day you sign your loan documents is not the day your loan closes.  The signed paperwork must be returned to the lender to ensure that no paperwork was missed, and that all papers were signed correctly.  (There is actually more than that going on behind the scenes, but this is one thing that can go wrong).  If you live in one of these states, signing on November 30 is too late to qualify for the tax credit.  What about the week before?

Wednesday before Thanksgiving, many businesses are short staffed, as people try to extend the holiday, and banks often work only a half day on that Wednesday.  Thursday, of course, offices are all closed.  Friday is a repeat of Wednesday.  Even if you sign on Monday or Tuesday of that week, there is the possibility that if an error is found in your paperwork, with the short and hectic work week, you may not be able to get those errors corrected in time.

Your best bet, to ensure that you don't watch that $8,000 disappear, is to make sure you sign your loan documents the week before the Thanksgiving holiday!  Caution and careful planning could save some of you a lot of money!

Shelby