Realty.com

Beating the $8k Homebuyer Tax Credit Deadline

Posted March 29, 2010 by Matthew Denton

Some tips on getting your application done

If you’re still clueless on how to beat the $8,000 tax credit deadline for first time homebuyers, worry no more. Here are some smart tips on buying primary residences, including: single-family homes, condos, townhomes, or co-ops and wanting to take a big cut on your expenses after closing the deal.

Tip No. 1: Secure a good credit score.
If you’re in doubt that you’ll qualify for a loan, make sure that your credit score is highly acceptable by the lender, otherwise, your home search will turn out to be a futile endeavor.

Tip No. 2: Get pre-approved of a loan.
This will make sure that you can move in quickly. You’re also increasing the likelihood of securing an offer that is not contingent upon your eventual financing. Your credit score, amount of savings and current income are just some of the factors that the lenders will examine.

Tip No. 3: Think about the services of a broker.
The deadline is fast approaching and since it’s your first time to buy a property, why not seek the services of a real estate professional who can help you with all the requirements of the purchase? The buying process is a bit complicated and doing it on your own may become detrimental to your plans.

Tip No. 4: Ask a private inspector to inspect the home early on.
For some buyers, they’re too enamored with the property that they forget about the house if it’s in good condition. Asking a private home inspector to come up with a report earlier is a good way to determine if what you’re buying is truly worth the price. Otherwise, you can still have enough time to find another property in the market.

Tip No. 5: Entertain any condition that might keep you from staying in your new home within three years.
Since the tax credit would only be granted if you stay in your new home within three years, it just makes plain sense that you plan ahead. If your company would most likely relocate you in two years, you might not want to avail of the program anymore.

Tip No. 6: Rush the purchase but be careful.
All purchase contracts have to be signed before April 30 so there’s little time left. It’s important that you follow up on your purchase everyday to keep you monitored on the process.

Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.