To take advantage of the federal tax credit of up to $8,000, eligible first-time homebuyers have until the end of business on November 30, 2009, to close their loans.
Historically, it has taken 30 to 45 days to close a loan. However, new appraisal and disclosure requirements that recently took effect may add extra time to the closing process. To ensure you are able to take advantage of the tax credit, it is necessary to have a property in contract (this means a mutually agreed upon purchase and sale agreement signed by both parties) by OCTOBER 15 to be able to reasonably expect to close on time.
Title and Escrow companies will be Seriously Backed Up at the end of Novermber why it is crucial to give yourself plenty of time to close by the deadline.
Information about the tax credit:
· Available to qualified first-time home buyers
· Tax credit amount up to $8,000
· Eligible for homes purchased on or after January 1, 2009 and before December 1, 2009
· Available on single-family detached homes, townhomes and condominiums - newly constructed or pre-existing homes
· The tax credit does not need to be repaid unless the home is sold within the first three years after purchase
All the best,
Lake Forest Mark
