There are advantages to choosing a closing date either close to the first or close to the last of the month. Whether you are the buyer or the seller, you have a vested interest in the closing date working for you. The date is negotiable until the contract offered by the buyer is accepted by the seller. From that point on, all efforts must be made to ensure the date is met. If you don’t close on time, you can complicate your move and risk losing the house.

As a buyer, you need to give yourself plenty of time to work out details with your lender. Most people set a closing date 30 to 45 days after the offer is accepted. A home purchase has many moving pieces and there’s always a risk that more time will be required than you think. For example, the lender may ask for additional documentation as part of the loan process. Unless you are paying cash, you don’t want a quick closing date.

Frequently, it is wise to choose a closing date near the end of the month. Interest is prorated from the date you close to the last day of the month, so you will pay less if you close near the 30th. For example, if you close on July 10, you will have to pay 21 days of interest. If you close on July 25, you only pay six days of interest result in a savings of several hundred dollars due at time of closing.

However, there are certain advantages to closing early in the month. While you will indeed pay more in pre-paid interest, you won’t have a house payment for nearly two months. This may be your best choice when considering cash flow during your move. Loan interest is paid in arrears and your pre-paid interest will cover to the end of the month. If you close in early July, for example, you won’t have a house payment due for August until the first of September. Also, because many people choose the end of the month for their closing, it is the busiest time for mortgage brokers. If the lender has a backlog, the closing could be delayed.

You will establish an occupancy date as well as a closing date. At closing, you will assume ownership of your new home. However, the actual move-in date may occur later depending on your circumstances. Sometimes the sellers have already vacated the property or will move out immediately upon closing. Others may request an extended occupancy due to the move-in date of their next home and will then pay rent to you as the new home owners until they are gone. Also, you may choose to do some renovation work on your new home before moving in and will plan on a later occupancy date. Of course, your plans will need to coordinate with the move-out date of the property where you currently live.

One last tip:  avoid the holiday rush. If you are planning to make your move over a holiday, such as the four-day Thanksgiving weekend, don’t schedule your closing date for the Wednesday before Thanksgiving. Back it up to the Monday prior so that any glitches that might arise won’t derail your long-weekend moving plans.

Throughout the closing process, your real estate agent will guide you in planning dates and avoiding pitfalls. Lean on their expertise and you’ll be living in your new dream home before you know it!

If you are disappointed to find that someone else has already submitted a contract on your dream house, you may want to consider making a backup offer. The housing market has been tight everywhere in recent months, so discuss this option with your real estate agent if you really love the house. Backup offers don’t always work out, but enough do that you might want to consider the possibility.

Because the backup offer is a binding contract, you want to be sure that your financing is approved and that you’ve included all the contingencies that you would have in a first offer. If the original contract falls apart for any reason, you must be prepared to follow through with the purchase. Make your offer a fully executed agreement signed by you and the sellers, outlining price and terms. This will ensure that they must sell to you within a specified time period if the house becomes available again.

There are many reasons the original offer might fall through:

• The buyers’ loan might not be approved. Loans are becoming tougher to get and if they can’t get approval, the buyers will have to back out of the deal.
• The lender will require a home appraisal to verify the home’s worth. If the appraiser says the property is worth less than the price offered, the lender can deny the mortgage.
• The home inspection might uncover problems that the buyers don’t want to deal with and the original contract can fall apart.
• The buyers may have made a contingency contract based on the sale of their current home. If that sale doesn’t materialize in time, the domino effect could make your dream home available again.
• There might even be problems due to homeowner association requirements. For example, the buyers might have three pets and back out of the contract when they discover the HOA only allows two.

Several of these scenarios can work well for you and your backup offer. If the first deal crumbles, the sellers may be willing to move ahead very quickly with your offer. With a contract on the table, they had already begun the mental process of packing, moving and handing over the keys to someone else. If their deal comes to a screeching halt, the seller may be very willing to accept your backup offer just to keep the momentum going.

You may also realize an advantage if problems were uncovered by the inspection conducted for the first buyers. Those issues aren’t going away, so the seller may be more reasonable in negotiations with you rather than lose the deal a second time. The seller is legally required to disclose any problems with the house, so you will know any of issues uncovered by the first inspection before you start to spend time and money on inspections of your own.

Real estate transactions require many steps and something can go wrong at any phase of the process. Rely on your agent to walk you through every phase, including preparing a backup offer. It may save the day when your dream house is on the line.

You’ve searched and searched, finding nothing that suits, when suddenly you’ve found not one, but two homes that would be perfect. What to do? First, remember that your housing market may demand that you come to a decision quickly. You don’t want your dream home to get away. Be prepared to make a prompt, reasonable decision using your head as well as your heart.

Make a list to help weigh the pros and cons of each property.  Start with the basics:

• Size
• Condition
• Age
• Schools
• Distance to your workplace
• Transportation options
• Homeowners association dues

Take a look at the surrounding neighborhood. Is it well maintained and safe? Look to see if there are many other homes for sale and check on the area’s crime statistics.

How long have each of your two favorite houses been listed? A seller is more likely to accept a lower offer if the home has been on the market a long time. If the price between the two homes is significantly different, the cost might be a deciding factor. Committing to a 15 or 30-year mortgage means your standard of living may be better starting with the lower price.

If you have children, you are likely interested in having other families living nearby, proximity to playgrounds and parks, as well as good schools. Even if you don’t have children, note that homes near quality schools will hold their value better than those near poor-performing schools.

Finally, which of your two candidates has the most features from the wishlist you had in mind when you started your search? A gourmet kitchen, space for gardens, room for entertaining, a home office, walk-in closets – what do you want the most and which house hits more of your hot buttons?

This list will likely nudge one home to the top. Throughout your deliberation, be sure to use your real estate agent’s skills to help guide you through the process. Your agent has great knowledge about market data and the investment potential of the properties. He or she will have important information on the situation of each of the homes’ sellers. Your agent will be glad to take you through the houses more than once or twice so you feel comfortable with your decision. Depend on your agent to take emotion out of the equation and help you look at the facts about each property.

Ultimately, you don’t want to spend too much time deliberating between the two homes or they may be lost to other buyers. If all else fails, go with your gut. If you are deciding between two dream homes, you can’t go wrong.

An inspection of the physical condition of a house should be included as a condition of closing the sale. Your real estate agent will make arrangements for a professional inspector to look for defects in the roof, plumbing, electrical, heating and cooling systems, paint, windows, doors, and foundation. The inspector will also check for dry rot, mold and pest infestations, and should check outside for any problems with grading, drainage or retaining walls. You might want to arrange for inspections for mold, asbestos, lead or radon. Depending on the property, you may want to ask for testing well water, oil tanks or septic systems. Most inspectors are qualified to conduct all of these tests, although some may require additional fees.

The seller is required to provide a disclosure sheet about any issues of which they are aware. This is just a starting point for the inspector, however, because there are likely problems the sellers either don’t know exist or have actually forgotten about.

It is most common for buyers to have the inspection done after they have made an offer and the sale of the house is contingent on the buyer’s approval of the results of the inspections and resulting repairs. Keep in mind that all objectionable inspection issues must be “repairs” and not “improvements”. A repair may be a broken window, for example, and an improvement would be new counter tops.

The inspection usually takes two or three hours and will usually cost between $200 to $500 depending on the size, age, location and type of home. Buyers are encouraged to be present during the inspection so they can ask questions, learn about maintenance of the property and get a sense of which problems are serious and which are fairly minor.

The inspector will provide a written report of all findings which will be presented to both the buyers and sellers. If the report shows no major problems, you can move forward with the purchase feeling confident that you are getting what you are paying for. If there are big issues on the report, like major termite damage or an antiquated electrical panel, you can negotiate with the sellers to have them pay for repairs or lower the purchase price, or you can back out of the deal completely.