Wednesday, October 21, 2009

The End is Near for the $8,000 tax credit

Most lenders are taking upwards of 40 days to close an FHA loan, which most first-time buyers are using.  Today we’re 39 days away from November 30th – the date by which a first-time buyer must CLOSE on his/her new home in order to receive their tax credit.  Adding in a couple extra days for the Thanksgiving holiday weekend, and figuring overworked & overwhelmed lenders (and title companies) will get a little backed up next month, and…

Well, let’s just say it’s very unlikely that potential buyers out there who aren’t under contract yet will be able to take advantage of the $8,000 tax credit.

The good news is the tax credit should not be your only reason, or even your primary reason, for buying a home.  You should be buying because of your specific circumstances, maybe coupled with today’s low prices and interest rates, with the tax credit just being gravy.

The bad news is missing the tax credit stinks.  There aren’t too many things better than getting an $8,000 check from the IRS!

Our advice remains the same as it’s been all year:  Don’t buy the wrong house because of the tax credit.  But if you find the right house & were going to buy it anyway, try like hell to get it done before November 30th!

Your looking forward to catching up with tax credit clients next spring Realtor,

Chris Butterworth