Updated Nov 1, 2009
The Federal Government wanted to stimulate the economy by giving an $8,000 tax credit for first time home buyers. Buyers are on a time line countdown. Think about this:
It takes 30-45 days to close the loan once you have a signed contract with a seller. The financing and closing takes this long. Some in-house lenders can do an FHA in 2 weeks. Some wholesale loans in FHA can close in two weeks depending on the wholesale provider. Ask your lender.
However, you are entering the Time Crunch Zone! You and everyone else is trying to close before Nov. 30th, 2009. Closing by the end of the month prevents you from bringing one month’s taxes to the closing table on December 1.
It is November first. That means property taxes are due. You may have to negociate that costs with the seller in order to make all the payments at closing of the loan. Let’s say you are required to pay a years taxes at the closing table, you may negociate that with the seller and see if you can add to the loan amount to include the tax costs into your loan. Remember, the house has to appraise to qualify for the loan. Ask your Realtor about that or your Loan Originator.
So, make sure you purchase and sign the contracts as soon as possible!
Make your closing date closer to Nov 15 than the end of November. You want some time to extend your closing date if you need to, plus you want to avoid the Nov. 30th deadline. You could be crowded out by the public at the end of the deadline date. The Title companies are overworked and over scheduled at the last 10 days of the month, especially on this Nov. 30th deadline.
The stock market is rising, so the interest rates are edging up, today.
When was the last time you remember the interest rates at five percent? -back in 2001-2002? That is when everyone was refinancing.
Here’s a big piece of the tax refund from the IRS: remember, you must live in the house for three tax years or you will have to repay the IRS!
Set your calender, You would be best to buy a house, today, if you are hoping to get the best deal. A tax rebate of this size is on the table right now!
Nov 6, 2009 The President Barak Obama signed the Home Buyer’s Tax Credit Extention, today. IF you want your tax credit in Feb 2010, you must purchase by Nov 30, 2009. The old law still governs this year’s tax code for First Time Home Buyers. Check with your CPA to know the facts.
YouTube Video on sidebar: “First Time Home Buyers NAHB”
www.FederalHousingTaxCredit.com Federal Website that explains the tax credit.
There is no official extention of the tax credit deadline. All talk and no walk results.
Target line: November 30, 2009 Dead line: Dec 1, 2009 Bring property taxes to closing for 30 days. Ask your lender and Realtor about other fees.