The $8,000 Ooopps!
Ahh it’s summer and the weather is finally nice, there is so much fun to enjoy. The apartment is not that bad we can get by in this studio unit. I know I have saved some money for a house but after all I have the summer to enjoy and once fall is here we will buckle down and look for a house, I know I qualify for that $8,000 first time home buyer credit….If that sounds like you can I give you a different perspective? The first time home buyer credit is available IF you are living in the new house by December 1, 2009 NOT by the end of the year as many people assume. Chances are if you are taking advantage of the credit you may also be obtaining a FHA loan. Here is where it gets messy. FHA loans right now are bottle-necked in the system for the current buyers. Many of the FHA transactions are taking at least 60 days to slug through the system. Chances are that when you decide to start looking you are not going to buy the very first house you see, which means that you may spend a month (at a minimum) looking for that right house.
So let’s do a little reverse planning. You need to be in your new house on November 30th. The processing time for your loan can take 60-75 days from the time you had an accepted offer. Assuming that you close the day you receive the loan commitment (typically this does not happen) this puts the offer day at September 16, 2009!! If it takes a month to find the house you will need to start looking August 16th! If everyone waits until August 16th to start looking for a house, can you imagine what the backlog at FHA will look like then? If you are serious about using the first time home buyer credit you need to be out looking for that home TODAY. Waiting may cost you $8,000. If you would like more information on how to streamline your process, call me at the office, 1-888-HEY GLEN, Let’s not make a $8,000 ooopps.
Posted by:
Glenn Hanon
