Close before or after year end?

[Daniel Leake]

Hey,

I am purchasing my first owner-occupied (and first ever) home. Closing is currently set for December 28. Would there be any reason that the Realtor is trying to close before the end of the year, or any reason that I would want to wait and close in 2011?

I understand interest paid, points pre-paid, etc...can all be written off in whichever year they are paid in. Is there any additional benefit either way?

Thanks!

[Account Closed]

John, there good reasons to close before or after year end if it was investment property because there would also be some tax issues that could affect investor.

With the owner occupied house the buyer may have little to gain from closing before year end at least if they are a first-time home buyer. Reason being that there will be little mortgage interest and a relatively large amount set side for property taxes. If the home buyer hasn't been able to itemize in the past this probably means these expenses will not be deductible because the homeowner may not have sufficient deductions to claim the expenses.