The $8K first time home buyers tax credit expires on November 30th. Buyers have less than 6 months left to find, negotiate and close on the purchase of their home!
Both conventional and Federal Housing Administration (FHA) insured mortgages are taking longer to process this year due to tightened lending guidelines, a spike in FHA mortgage applications and new appraisal procedures. Delays with financing are more commonplace this year. The closing for a buyer of mine in Lakeview recently was pushed back 3 weeks due to financing issues.
I recommend that buyers who use conventional financing have a contract to buy with a seller by Oct. 1st.
Buyers who use FHA financing should be under contract by Sept. 1st.
Buyers who plan on purchasing a foreclosure or short sale should be making offers 2-3 months earlier. For those wishing to use FHA financing, that means now! Some lenders will respond to offers within a couple of days, but many take weeks to respond. I had a bank take 11 weeks to respond to an offer last year!
Buyers who don’t follow these timelines risk unforeseen delays pushing their closing date past November 30th and missing out on the $8K tax credit. There are no extensions!
If you want to take advantage of the $8K first time home buyer tax credit, let’s talk now!
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
