First-time Homebuyers in Birmingham AL need to close on their home by November 30, 2009 in order to be eligible to receive the $8,000 Tax Credit.
Time is getting short!
If you haven't already gotten started, you need to find that home and negotiate terms that you and the seller agree on. Once you have a contract you will begin the loan process. This won't happen overnight. An average period to close your loan is about 45 days.
Don't forget about the holidays! You don't want to count on being able to close on that last day......what if your closing is delayed? It happens all the time.
Don Rogers' article explains how this could impact your closing, as well as a couple of pretty cool countdown clocks to help you keep up with how much time is left. One counts down the days until the credit expires; the other counts the days until you should have a accepted contract on a home.
Via
Don Rogers REALTOR®, GRI O'Fallon MO & St Charles County MO homes (RE/MAX Gold):
So Why The Clock AND Is It
The Right Time? Which clock should be
used?
I have been using this clock, below, for some time now on my weekly market
updates to draw attention to how much time is left until the $8,000 Tax Credit
expires.
Countdown Clocks
And to the best of my
knowledge, right now, the Tax credit is set to expire at the
stroke of midnight on November 30, 2009.
So here is my dilemma…..On
Friday I was talking with a friend and managing broker from another
company. Yes we can have friends that
work in other companies, but I digress.
He brings up a very interesting point and one that we need to look at
when presenting this topic to our eligible homebuyers. That is:
- November 30, 2009 is a Monday
- November 29, 2009 is Sunday
- November 28, 2009 is Saturday
- November 27, 2009 is the day after you guessed
it
- November 26, 2009 which is a Thursday and a HOLIDAY
(THANKSGIVING)
Does anyone see a possible problem
here? Or is it just me?
- Are we considering the possibilities of potential problems with funding, to where
the property has closed by the prescribed time?
- Title companies/Attorneys can handle just so many closes in a day even
if they have extra closers on hand to handle the rush and where will they
come from?
- Banks are still going to close at 5pm, maybe 6pm in some areas!
- What about getting the wire transfer of funds in time to close before 5pm, maybe
6pm in some areas?
- What happens if there is a change to the settlement statement that will affect
the APR at the last minute?
Remember the RESPA changes that have taken effect just recently.
- And the list could go on and on.
So should we be looking at, at the latest unless it is an all cash deal, closing
on Friday November 20, 2009?
Just so we will have a little bit of a cushion in the event of a
problem!
That being the case, if we
figure 45 days to close on a home then this is what the clock would look like
to have an accepted contract as opposed to the one above.
Countdown Clocks
Just sayin’………………………
Don Rogers is a licensed REALTOR® in Missouri. I specialize in St. Charles County. If you are looking to buy or sell or you are relocating to the area and would like information about the St Charles County MO area do not hesitate to give me a call at 314-954-6775 or if you would prefer to send me an email at Don@DRogersHomes.com.
;)
;)
Excellent post Ann! I had not even thought about the deadline being so close to Thanksgiving! Looks like the count down is even closer than we thought.
By the way... I love your new photo!