If you are contemplating a purchase in the hope of getting the first-time homebuyer’s $8,000 tax credit, I want to make sure you are aware of the approaching deadline.
You may have noticed the countdown clock on the left side of this page. Technically, the credit expires on December 1st. Home purchases must be closed by November 30th. However, you need to allow time for the escrow process. Most lenders will require about 30 days to process conventional loans, and up to 45 days or more for FHA. If you are buying a bank owned property, you may experience delays in finalizing the purchase contract. There are a number of other issues that could cause delays. In addition, the Thanksgiving holiday may cause some delay in closing at the end of November.
To allow time to meet the deadline, you should have an accepted contract by mid-October. If you do not already have some homes in mind, it may be difficult to find one and get a contract in time. Of course, if you are paying cash, you have more time, but even then, unexpected delays can extend the closing. Allow at least 3 weeks if paying cash.
Please do not rush into a purchase just for the credit if you are not entirely comfortable with the home. Better to forgo the credit and get a home you really want than to purchase one you may regret later. There is discussion in Congress about extending or expanding the credit beyond November. However, nothing is certain and no one can promise that an extension will occur.
Please contact me if you have any questions, or want assistance with your home purchase.
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