OK…the important date to remember here is October 01st,2009.
Yes, yes, I know…the tax credit ends on December 01st…BUT, the transaction for the house you want to buy must be closed by the end of the day on November 31st. If it closes later than that, you will not qualify for the credit.
Most lenders are requiring 45 days to close a loan as they are now faced with complex challenges (see my post from August 5th entitled “Say Bye-Bye to 30 Day Closings”).
To be on the safe side, I would suggest adding two more weeks to the timeline. That means if you have not identified and/or in contract with a seller by October 01st, you may miss the boat. Well, guess what…that is only five weeks away!
At this time, we do not know if the Fed’s will extend the credit. For information about the tax credit click here: Federal Housing Tax Credit.
If you are currently house hunting, keep these dates in mind. If you are on the fence, now is the time to talk to your lender. Also, it is critical to make sure your that your lender is very experienced and is well educated with the most recent regulations and proceedures. I would also suggest that you hire a lender that works in your area. That way you can sit face to face with him or her whenever necessary. Ask your Realtor to refer you to their recommended professional.