FIRST TIME HOME BUYER PROGRAM - TIME IS RUNNING OUT!!

TIME IS RUNNING OUT FOR THE FIRST TIME HOME BUYER CREDIT.

Although the $8,000 First-Time Buyer Credit runs through the end of November, Buyers need to be aware of the time it takes to close on a home. Let's move backwards on the calendar to help a Buyer find out the last date they need to execute a contract for the purchase of a home.

To close in time to qualify for the $8,000 Credit, Buyers need to execute the purchase contract by OCTOBER 8, 2009. Here is why...

1. You never want to close on the last day of a deadline, so Monday, November 30 is a bad day to try and close. Since it is the last day of the deadline, numerous buyers that wait to the last minute will be pushing to close on that day. As a result, lenders will be exceptionally busy and many closings will not make the deadline. You want to avoid this day at all costs.

2. Thanksgiving is on November 26, and typically businesses are closed on November 27, meaning November 25 becomes the absolute last day you would want to close on a home. But, funding can take some time, so to give you a few extra days, I suggest you back up to the week of November 16-20 as a closing week. Preferably no later than November 17. This way, if you close on November 17, and funding takes 3 days, you will beat the deadline and can enjoy Thanksgiving with your family, without the stress of closing.

3. With November 17 as an established closing day, now lets back track to find your execution date. When buying a home, you always want an option period. 7-10 days is the norm, and this allows you to get the home inspected, before you make a final commitment to purchase. November 17, less 10 days, is November 7.

4. 3rd party financing is required any time you are seeking to get a loan for a home. Typically, agents input about a 21 day loan approval process. This gives you 11 additional days after your option period expires to have the home appraised, and finalize your loan approval. November 7, less 11 days, is October 27.

5. Additional time for loan underwriting is also needed. To this point, we've allowed for 21 days for the option period and loan approval. However, time is still needed for the lender to obtain full underwriting approval, and fund the loan. Add in the new laws that a Buyer can't close for 3 days after full disclosure of the loan, and you can safely assume 10 days. Bringing total time to 31 days from execution to close. October 27, less 10 more days, is October 17.

6. To be on the safe side, many Buyer Agents will negotiate a full 45 days to close, allowing their client to close earlier if possible, but allowing for any problems along the way. Many times, a lender will require a document, or might have to make an adjustment to the disclosures, thus delaying the closing by the required 3 days. Lets just say that 40 days is sufficient. October 17, less 9 more days, puts you at an execution date of October 8.

7. So, as a Buyer, to have plenty of time to close on your home, you need to Execute your contract on October 8, end your option period on October 18, end your 3rd party financing on October 29, and be ready to close in approx. 2 1/2 weeks by November 17, funding by November 20, thus allowing you to enjoy your Thanksgiving week in peace with your family, knowing that in 2010 you will get up to an $8,000 credit on your taxes IF YOU Qualify.

8. Oh, don't forget. Today is September 17! That means you have only 21 days to get a good agent, and find your home! So, you need to get looking! To find a home quickly, you can call me at 817.706.9772.



LEARN ABOUT HOW TO QUALIFY FOR THE FIRST TIME BUYER CREDIT BY CLICKING HERE.