While many of you are fully aware of the $8,000 Federal Tax Credit for purchasing and closing on a home purchase by November 30, 2009; most of you who have not yet purchased, completed inspections and appraisal by today your at risk of not being able to complete all the mortgage details and close by 11/30/09.
At our weekly business meeting today in our office, our Watson Mortgage Loan Officer informed us that any loan applications made after November 6th will probably have great difficulty in closing on time for the tax credit. As a result of the incredible surge in buyer activity there is a developing backlog of qualified home inspectors, appraisers and title examinations and review which are now causing a delay in completing closing. Last month, we felt 30 days was sufficient time to apply for and close on a transaction. Today, however, we are recommending at least 45-50 days completing the process.
Buyers who want to meet the tax credit deadline need to get into the market immediately. Select a very experienced real estate professional who is most familiar with the neighborhoods you are interested in, gain a referral to an experienced mortgage loan officer from the area and begin the look. This is no time for an “online lender” or an “out of area lender” to trust your loan to. Time is of the essence and immediate action is needed.
Your real estate professional can provide you some proven “tools” to help you make the best and informed decisions regarding the entire process. Before you select the home of your dreams you must enter the process well informed of the current and real values of the neighborhoods you are considering. Know in advance, your total acquisition costs which include the purchase price, closing costs, prepaid expenses and down payment requirements of your lender. Demand a GFE (Good Faith Estimate) from your lender upfront so you can know all costs associated with this purchase and understand all associated costs.
There are some still great buys out there today but the steals of a prior market are behind. Don’t miss the incredible buying opportunity with unbelievable mortgage rates. Find a great Realtor, ask, listen and make good decisions. Know full well what a property is worth in “today’s market” before your make an offer. Know what you are willing to pay and win.
Don Shamblin, Realtor, CRB, GRI
Vice President
Watson Realty Corp
www.WatsonRealtyCorp.com
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