The announcement made this week (5/13/09), that the $8,000 Tax Credit can be used for down payment and closing cost is a real incentive for first time home buyers. Most first time home buyers have trouble getting the money for a down payment and now that barrier has been removed.
The program is scheduled to end December 1, 2009 so first time home buyers need to begin the process now as it will take some time to find and purchase their new home.
•· Obtaining financing qualifications 1 week
•· Finding their next home 2-3 weeks
•· Negotiating agreement, price and terms 2 weeks
•· Repairs 2-4 weeks
•· Final Loan Approval 2-4 weeks
•· Closing FINALLY!
It could take 3 months or more for the process from beginning to end and if purchasing new construction it could take even longer for the builder to complete the home.
Also, don't wait until the last minute. Many closings are held up a day or more with paperwork, so scheduling your closing no later than November 25th (Thanksgiving is the 26th) to make sure you close before the program ends.