Closing can be hectic with dozens of forms and legal terms flying around the table at a fairly high rate of speed. A few pointers might make things a little smoother. Here are three things to keep in mind:
At the closing, the seller may request more time to vacate the house that you are buying from him or her. This is not uncommon, especially when the seller has yet to close on his 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 an escrow until the seller has actually moved out of the property.
Some closing costs are deductible, including points, pro-rated property taxes. Other closing costs are not normally deductible in the year of the sale but may be added to the homes; adjusted tax basis to reduce your tax liability when you sell. Check with you 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. Most plans cost between $350 and $450 and offer varying levels of protection.
