Time is running out for the $8,000 First Time Homebuyer Tax Credit

Posted by Annalisa Burgos | September 16, 2009

tax-return-credit-for-first-time-homebuyers

If you (or your spouse) haven’t owned real estate in the past three years and you’re in a good position to buy a home, it’s time to get your butt in gear!

The deadline to take advantage of the $8,000 tax credit for first-time buyers is midnight on Nov. 30, and that’s coming up sooner than you think.

READ: You have to close on the home purchase by Nov. 30.

The closing process has been known to take at least 30 days, and now with stricter lending standards and a more complicated appraisal process, delays can be expected. And tack on even more time if you’re dealing with a foreclosure or short sale.

So since you’re trying to close by Nov. 30, and Thanksgiving is the week before, plan to have a signed contract and begin the closing process no later than the end of October, unless you’re an all-cash buyer and don’t need financing.

And remember you don’t have to wait until you file your taxes to get your credit. Ask your mortgage broker or real estate professional about programs that will let you apply the credit to your closing costs now.

For most of the year, first time buyers looking for “bargains” (i.e. distress properties) were the main driver of home sales. Should that group go away with the end of the tax credit, the industry could be in for hard times in 2010.

That’s why the National Association of Realtors is lobbying to have Congress extend the credit and real estate agents are creating a sense of urgency (ex: Prudential Connecticut Realty countdown). And you’ve probably seen all the TV commercials encouraging people to buy.

So what are you waiting for?

Find out the 6 steps to beating the tax credit deadline >>

Of course, if Congress decides to extend it, then all’s good. But with all the focus on healthcare reform, that’s no guarantee.

Comments Off