The government isn’t in the habit of giving away money to the average citizen who doesn’t have exotic tax loopholes, but anyone thinking about purchasing a house should contact a Realtor and begin looking as soon as possible. It could be worth up to $8,000 to you. The tax credits expire April 30.
First time home buyers are eligible for up to $8,000 or 10% of the market value of the home. Qualified repeat homeowners are eligible for up to $6,500. Contracts must be executed by April 30 and closed escrow by June 30, 2010.
What does this mean to you? Depending upon where you live and the laws governing real property of your state, the speed with which your lender can act, and the timeliness of your Realtor, purchasing a house from start to finish can be done in as little as a week for a cash buyer, to two months for a buyer using financing.
Sitting down with a Realtor should be priority one. He or she can guide you to a lender who will be responsive to your needs, and a lender who knows and understands the area in which you plan to purchase a property. Internet lenders have no idea about the peculiarities of individual areas; using a local lender is always the best choice. Any problem can usually be resolved fast and competently.
The lender will ask for all types of documentation and the faster the buyer provides this, the sooner the loan commitment can be made. While this is transpiring, the Realtor and the buyer can determine criteria and begin looking. Finding a property can be accomplished in a few days if buyer and Realtor work full time during that period.
Once the property is identified and a contract written, the response from the seller may take a few hours to several days. Because short sales often take months, purchasing a short sale and trying to come in under the April 30 deadline is self defeating. Time must be allotted for counter offers, or possible rejection, at which point the buyer must determine whether to submit another higher offer, or begin looking again.
Assuming the offer has been accepted, and one week has elapsed, all inspections must be done. In Arizona, the buyer has ten days in which to complete all inspections for the property which includes any and all inspections desired by the buyer, but usually the home inspection and a termite inspection. The request for repairs is then made to the seller who has five days in which to respond.
We are now more than two weeks into the process. Be aware, the seller may opt to decline to do any repairs. These small challenges along the way should be explained to the buyer by the Realtor. If we began today, the process so far would take us to the first week of March.
The repair addendum has been negotiated and now we must tie up loose ends. In Arizona, the Realtor will review the commitment for title and make sure there is clear title to the property, issues such as how to take title, disclaimer deeds if needed, must be completed and provided to the title company, and any special documents such as septic certifications, well certifications or Affidavits of Disclosure must be completed properly and submitted to title.
At this point, we are probably into the end of the second week of March. The loan officer is completing his paperwork, submitting information to underwriting, and the appraisal has been ordered. Now it is a waiting game. The property can probably close escrow by the end of March. But the process has easily taken more than one month.
There are many people working to make sure a buyer is successful purchasing a property. Many work behind the scenes and are an integral part of a successful transaction. It is the Realtor’s job to make sure all function seamlessly and that the buyer understand what is transpiring every step of the way.
Call your Realtor today so you can take advantage of the $8,000 and if you are purchasing a second home, look at the $6,500 tax credit!
For further information or to find a Realtor near you, contact Terry at email@example.com
Questions and Information about the Tax Credit: