Time is running out to claim the $8,000 first-time homebuyers tax credit. When it passed earlier this year, part of the economic stimulus package, was a credit for first time home buyers. The credit is good for up to $8,000 or 10% of the purchase price, which ever is less. This credit does not have to be repaid!
However, the buyer needs to close escrow by Dec 1, 2009 in order to qualify. Now there has been talk of an extension but it has not happened yet. I am a firm believer in "better safe than sorry" and I am encouraging people that if they are planning on purchasing a home in the near future, do it now.
Many buyers think they have until November to start looking but the reality is that it can take awhile to close escrow. First they have to find the home they want and submit an offer. Then the offer needs to get accepted, short sales can take months and bank owned foreclosures more than a week. Many buyers quickly realize that well priced properties get snapped up quickly and they are often out bid by cash buyers who do not have to worry about the property appaising. The process can take some time. Once a buyer accomplishes getting an offer accepted then escrow opens. With changes in lending procedures, escrows can easily last 30-45 days, many lasting 60 days or more.
So, if you are considering buying a home, do not wait to start your home search. It can take much longer than you anticipate.
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