The federal home buyer tax credit expires April 30 and the deadline is sparking a home sale surge. It figures to burden real estate, mortgage and title offices nationwide over the next 60 days so it may be wise to remind your clients and plan closing dates accordingly.
Especially because the last Friday in May is the Friday before Memorial Day. 
Now, if the connection between the tax credit and Memorial Day is not immediately clear, think of your own office on a 3-day weekend’s Friday. Some of your colleagues take a half-day at work; others take the entire day off.
The same is true in the real estate field. Offices are short-handed ahead of a holiday so, planning a closing in May, consider a closing date other than Friday May 28, 2010.
And meanwhile, with 6 weeks until Memorial Day, here are some steps you can take with your clients today to help prepare for other people’s time off later.
- Notify the lender of planned vacation time for yourself or your client between now and your scheduled closing
- Advise your client to purchase a homeowners insurance policy and prepay the first year. Send proof of payment to your lender.
- Have Power of Attorney forms lender-approved and signed by all parties in advance, if applicable.
- Remind the client to deposit gift monies and/or retirement fund withdrawals into an acceptable bank account, if applicable.
- Schedule the final walk-through as far in advance as is realistic so there’s time to make “fixes”, if needed.
- Remind your client to have your closing funds ready at least 1 day in advance.
The tax credit’s expiration is around the corner and as it gets closer, real estate-related businesses are taking on more work. Basic title and mortgage tasks are taking longer to complete and that should persist for a while.
Get ahead of the curve and beat your contract dates handily. Use the checklist above and be responsive to the lender’s requests.
