Wednesday, September 09, 2009

3 things first time buyers should know to get the 8,000 tax credit

The first time home buyer tax credit will expire on November 30. With Thanksgiving that week it might as well be a week earlier. Typical F.T.H.B. are getting financing through FHA, VA, or USDA. These type of loans will usually take 45 days to close, if there is no major issues with the borrower. So we have a month to find a home, go to contract, and close it to get the cash for the buyer. Here in Manatee county First time home buyers, and their agents are scrambling. I get a few calls a day from buyer agents asking if one of my listings would be able to close in time for the deadline.

My advice for a first time home buyer?

1. Avoid short sales, unless they are "pre-approved"- Short sales can take months to close. You do not have time for that, and betting that you found the "one" short sale that will close in time is a risky bet now. Focus on foreclosures, and regular motivated sellers ( yes, they do exist!).

2. Get your financing in order as much as possible, as early as possible.- If the deal does not close due to financing issues, or worse, is delayed for financing issues. You will be the one losing the benefit of the tax credit. Make sure you have a reputable lender, be realistic with the time frame, and be proactive to make sure they have everything needed to close the deal.

3. START SHOPPING RIGHT NOW! - Did I mention you have about a month to find, and get into contract with your next home? Also, you are not alone. There are plenty of buyers out there trying to do the same thing. The good deals are going FAST.. I wrote an offer for 5k over list price, pre-qualified buyer, quick close, etc. We were beat out. The home had gone into a bidding war. My buyer was maxed out with what he could afford, but we made the offer within 24 hours of the home getting listed.


1 comment:

CoachingByPeter said...

Buyers must do thorough research on some info about short sale for lenders may not disclose all necessary details. There maybe some delay on the approval process due to the condition of the documents.