If you are a first time homebuyer and you wanted to take advantage of the 2009 first time home buyer tax credit, pay attention!! As of this moment, there has been no extension of the $8000 tax credit by Congress. It will expire on November 30, 2009. That means that you have to purchase your first home and close on it BEFORE December 1st, 2009.
I have some advice for you. Forget “short sales”. They aren’t short and it can take as long as three or four months to hear from the seller’s bank, which has to approve the sale. You don’t have that kind of time. Focus instead on foreclosed homes or seller owned homes. The bank owning the foreclosed home will respond to any offer usually within the week. With a seller owned home, not a short sale, you could receive a response in 24 hours or less.
Don’t wait till the last minute. In this turbulent market, loans are more complicated, houses have more issues, and foreclosures add a whole level of complexity. Do plan to close by the end of October or middle of November, at the latest. If anything goes wrong, you’ll still have a cushion of time to make the deal happen.
Remember, it’s about the home. It’s great to get a tax refund of $8000, but you still have to live in that home for 3 years or more for the refund to be permanent. Don’t buy a home just to buy a home. Make sure it’s the right one for you. Don’t wait till the last minute and buy in a panic. Homes in the lower price ranges are moving briskly. Start shopping now and keep an eye out for new listings coming on the market. They are more likely to contain “stars” rather than the “dogs” than have been on the market for months.
Shop smart. Shop now. Get the credit. Get a great home. Good luck.
For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs. “Simple answers to home ownership questions”.