First Time Home Buyers - You Might Lose Your $8000 Tax Credit!
As Americans, we are notorious for procrastination. We have been procrastinators since our forefathers came across the pond and settled our country. Heck, If we weren't procrastinators, we may have arrived 100 years earlier! Mark Twain knew it when he penned his famous quote in 1927:
"Do not put off until tomorrow what can be put off till day-after-tomorrow just as well."
Keeping that in mind, Don't put off buying your first home until later because you may miss out on your $8000 tax credit from the federal government. The tax credit is only good if you purchase before December 1, 2009. It seems like the deadline is quite a ways away, but it isn't. Here are a few things that you need to consider:
1 - Interest rates are the best they have been in decades and economists are predicting that rates will be increasing as we approach the end of the year. An $8000 tax credit isn't worth as much if you had to pay higher rates to get the loan.
2 - Home prices are the best that they have been in years and economists predict that they will tick up a bit before the end of the year. I think that the "Starter Homes" are more likely to increase than other higher end homes. Why? Because prices in this category are being pulled down by the high inventory levels. As we get closer to the tax credit deadline, first time buyers will start to deplete the inventory and drive prices up. Wouldn't you rather be watching this happen from the comfort of your new home?
3 - There will fewer nice homes to choose from as we near the end of the year.
4 - On average, from the day a buyer starts searching it takes 107 days until the deal closes and they can move into their new home. But that time may be increasing! Read on...
5 - The time needed to secure financing is already increasing. Lenders are already starting to see increased volume in the industry. Loans that used to take 2 weeks to get final approval and funding are sometimes taking 3 to 4 weeks. Banks are tightening up their restrictions and it is taking longer to get loans through underwriting. Who knows how long is will be taking by the end of the year? What if you miss the deadline?
6 - Title companies are starting to feel the crunch as well. Many title companies were forced to close offices in the past year. If we experience the rush that is being predicted, they will be backed up and there could be delays getting your new purchase through title on time.
What will happen if your home doesn't close on time? "Oopsies" aren't allowed on tax returns and the IRS doesn't want to hear about your home purchase being tied up in underwriting and not closing on time. Their response will simply be, "You should have started earlier!"
When you choose us to handle your Vancouver Washington real estate needs, you choose a team of realtors® who care about you and your family. Buying or selling a home is always more enjoyable when you work with professionals who will listen to your needs and who will work together with you to achieve your objective. We are very familiar with all types a real estate in Clark County and we specialize in Vancouver, Ridgefield and Battle Ground. We are also very experienced with new home and custom home construction having assisted several local builders in selling new neighborhoods in the Vancouver Washington area. Additionally, we have helped numerous families build their own Vancouver Washington dream homes. We are dedicated to helping you make intelligent, informed decisions and to providing you with exceptional service. Go to www.ernw.org for more information. See our video here.
Comments(2)