Tuesday, August 4, 2009

Tick Tock, Tick Tock: Time Is Running Out, So Don't Miss The Boat!

Photo by dcecil805 on Flickr

With the clock running down on the $8,000 tax credit for first-time home buyers and less than four months to go, builders are urging qualified prospective buyers to start the sales process long before the Nov. 30 deadline.

Faulty appraisals that have been using foreclosed properties as comparables for new homes have been slowing down the sales process in many instances, builders warn, creating hiccups in the financing stage that can often push the closing date much later than originally expected.

First-time buyers should also anticipate tighter lending standards that generally don’t allow 100% financing, making buyers responsible for coming up with enough money prior to their purchase to meet required downpayment and closing costs.

For these two reasons alone, young families considering becoming home owners should be advised to start the process long before they put a bid on a new home. As part of that effort, builders can provide key educational information on the home buying process — including financing and closing — that their customers need to ensure that they occupy their new home in time to claim the tax credit.

+ Clock Running Down on First-Time Home Buyer Tax Credit [NAHB]

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