This is kinda urgent, so take a minute to think bout it...
* In order to obtain the First-Time Homebuyer Credit, you must settle by November 30th, 2009
* It can take 6 weeks or more to hear back from a bank, if they approve your short-sale purchase
* If you wrote the offer today, you would be hearing back on October 15th (Hopefully!) What if the bank says NO?
If you conservatively figure that it takes 30 days to settle, you would have two, MAYBE three weeks to find and agree to a contract on a house. Given the number of buyers in the market now, the fact that almost all first-timers are FHA borrowers, and the other inspections, etc. that must be done, there is going to be quite a crunch as the deadline approaches. Do you really want to wait 6 weeks to hear from the bank considering all of that?
Of course, there is talk about extending the first time buyer credit, but it is not guaranteed. And if you are a gambler, you might win. If you don't buy, and the credit ends, you are out $8k. If you don't buy and the credit is extended, you may win. Why? Because a good deal (OK most) of the demand in the market right now is being generated by the first timers...... extending the credit will diffuse that demand, and lower demand = lower prices.
Definitely something to think about!
Comments(1)