Here’s how the math is looking for the $8,000 tax credit for first time buyers:
To qualify for the credit, you have to close escrow on your property on or before November 30. Considering the backlog of escrow files that will be sitting at the title companies and being worked by the lenders in the days immediately ahead of the deadline, though, you may want to give yourself a bit of cushion and not set the close of escrow date for the 30th itself.
At the moment, thanks to all of the new lending guidelines, it’s taking up to 45 days to complete a conventional or FHA loan. (Some conventional loans may be completed more quickly, probably not so with an FHA loan.) Which means you need to have your new home identified and the contract accepted by the middle of October.
Today’s October 5 … which means you’re down to the final 10 days to take advantage of the credit as currently established.
There’s talk among some who would like to see Congress extend the credit as they did a year ago (even adding an additional $500 in the process) but there are no guarantees that will happen.
So if you’re sitting on the fence and you want that tax credit, now would be an excellent time to get off the fence in one hell of a hurry.[tags]Phoenix real estate[/tags]