$8000 Dollar Tax Credit - TIC TOC... TIME IS RUNNING OUT!!! Read Below
A reminder that in order to get the $8000 tax credit, escrow must close by NOV 30, midnight. Here in Temecula Valley and surrounding areas inventory is much lower than it has been over the past couple of years. That is important because if you have been out trying to get yourself a home, you know competition has been tough. With all the investors with cash in the market right now coupled with all the first time home buyers... It just might take some time to get that dream home you are trying to purchase. NOW IS THE TIME TO STEP UP YOUR SEARCH!!!
Why.... to allow time to find a home, get an offer accepted and all parties working together to close escrow. Keep in mind, I strongly suggest that you want to try to get into escrow by Oct 1, no later than Oct 15.Due to the fact that delays can happen and may add days to your escrow time. MAKE sure you go with a direct lender with a track record of ability to perform in an 30 day window. Many major banks are having a problem with this time frame so keep that in mind when deciding which lender you choose!
There is talk of extending the tax credit but unless it is voted in, you cannot count on it!!!
Below here are the bulleted points of what California Association of Realtors wrote and also please review the qualifications for the tax credit to see if it can help YOU!!!
•· Finding the right house can take some time, so REALTORS® recommend home buyers start looking for a home as soon as they are able and ready to purchase. Buyers also should build in extra time to accommodate the lending process, which is taking approximately two weeks longer to process this year compared with last year.
•· The tax credit is equal to 10 percent of the purchase price, up to $8,000, subject to income limits. Single taxpayers are eligible if their modified adjusted gross income is $75,000 or less, while married taxpayers filing jointly must have a modified adjusted gross income of $150,000 or less.
•· Only primary residences are eligible for the federal tax credit, including new or existing single-family homes, townhouses, condominiums, manufactured homes, custom homes, and houseboats. Vacation homes and investment properties do not qualify.
•· Purchases must be arm's-length transactions, meaning the seller cannot be the buyer's parent, grandparent, child, grandchild or spouse.
•· Married people filing as such cannot claim the credit if either spouse has owned a primary residence within the last three years. However, unmarried joint purchasers may allocate the credit in any way they see fit, as long as it does not exceed the $8,000 maximum.
•· The government will allow those who finance their purchases with a federally insured loan to apply their anticipated credit immediately toward closing costs or as additional down payment, rather than waiting until they file their 2009 taxes to receive the refund.
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But Wait.....Here is something to think about. If you are not already under contract you will have to pursue bank owned, standard or short sales (that are already through the process and buyers have walked). You and Everyone else are putting offers on these properties so you know you will end up paying top dollar in today's market prices (still a fabulous deal). What that may mean is that you just paid more for the home than how much that tax credit is going refund you.
Short sales, as long and frustrating as they are (make no mistake, you will need your patient hat on!)offer more choices and in general are not at top dollar unless the home is in OMG, gotta have it condition. So in the long run you may have saved more than the tax credit, it just will not be cash in the bank! Just something to think about so you can make the best decision for YOU!
I hope you find this information useful. If you have any questions or need any help, Please Feel Free to contact me!
Dianne Hicks
The Realtor You Can Expect More From!!!
(951) 514-5709
dianneh@tarbell.com
Tarbell, Realtors
License 01858415
Serving the Temecula Valley and Inland Empire
You can contact me through my website below or through Trulia
http://www.di4homes.com/
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