Time is Running Out For The $8,000 First-Time Home Buyer Tax Credit

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First-time buyers who want to take advantage of the $8,000 first-time homebuyer tax credit need to start thinking about closing as soon as possible. Even though December 1 is still months away, when you add in possible delays to an already lengthy process, those few months start to look like barely enough time to settle a Real Estate transaction. With inspections, negotiations, and new Truth in Lending laws, delays are looking more inevitable than ever.

 Jim Stalwart explains why home buyers need to take advantage of the credit now:

“While the economy continues to show signs of improvement and many housing markets are beginning to heat up, scores of would-be buyers are still waiting on the sidelines for further positive housing trends. But for first-time buyers, time is running short on the federal government’s $8,000 tax credit. Though the official expiration date of the credit is December 1, in reality, on-the-fence buyers will need to make a decision one way or the other fairly soon. The reason: in order to qualify for the credit, the home purchase must close by December 1st. Merely having loan approval, an accepted offer or a signed contract won’t be enough to qualify for the Housing and Economic Recovery Act. While each transaction is unique, closing a real estate deal is no speedy matter. On average, closing takes place 45 to 60 days after the date that the contract is signed. In order to meet the December 1st deadline, this would mean having a signing date in late September or early October. Those who consider the tax credit an important incentive but are still unsure about entering the market will need to make a decision one way or another before many more summer days pass.”

There are rumors of the tax credit being expanded to $15,000 or kept at $8,000 for another year. Senator Isakson from Georgia has introduced legislation to that effect, reports U.S. World News, but the proposal has yet to gain momentum.

Click through to read Jim Stalwart’s full post.

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