First time home buyer credit
First off let me say that I am the queen of procrastination. I am not getting on to you, but I know human nature and I am here to tell you, time is running out. I can’t tell you how many research papers I did the night before they were due in school. I made my believe I did my best work “under pressure”.
Well, the same for you if you are a first time home buyer and you would like to take advantage of the potential $8000 credit, time is a wasting. You need to take action and take it now!! You have, at this point, waited until the last minute. You have 80 days from today to qualify for your tax credit . Today is “the night before your project is due”.
You say, “what do you mean? I have until December 1st to buy my home?” Hear me loud and clear, YOU HAVE UNTIL DECEMBER 1ST TO CLOSE AND OWN YOUR HOME, NOT WRITE YOUR OFFER!!!! There is a big difference. Closing and owning the home and having an accepted offer on a home are two different things. Hear me one more time, you must close and own the home to qualify for the credit.
Okay, so what does that mean, what’s the big deal you say? That means you need to find an agent, get qualified for a mortgage and find a home by the end of November. If the average closing takes 30 to 60 days, that means you only have 20 days to find your home!!
This means that you can search for the home you want to make an offer on, negotiate your contract and get to closing by November 30th to beat the clock for December 1st!!
So let’s look at some of the details involved in getting you to closing by November 30th;
- Have all of your finances in order to hand over to your loan officer to get your loan done in time
- Finding a seller that can move and close by the deadline
- Making sure all inspection items can be finalized by the deadline
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Competing with other buyers who have procrastinated who will take up time slots to close at the last minute
Here is the most important thing I would like to say to anyone who is now trying to take advantage of the tax credit, DO NOT SCHEDULE YOUR CLOSING ANY LATER THAN NOVEMBER 15TH. LET ME SAY THAT ONE MORE TIME, DO NOT SCHEDULE YOUR CLOSING ANY LATER THAN NOVEMBER 15TH IF YOU ARE TRYING TO TAKE ADVANTAGE OF THE TAX CREDIT!!
Why? Because there are so many details involved with your loan and what and underwriter wants in a file these days it may delay your closing. You may need a week for a seller to make a last minute mandatory underwriter repair and you will need the time, with a major holiday in the middle of your closing, to make it by the deadline. The underwriter may ask for documentation from you for your loan package, there are many things that can go haywire at the last minute and you need a time cushion to get to closing on time. Just think how many other people are going to try to close at the last minute. The banks and title lawyers are going to be swamped trying to get everything done by the deadline.