First Time Buyers are excited about the $8,000 tax credit. The 1st timer is a veritable force in the real estate market right now, driving over 40% of sales.
But the credit is scheduled to expire on November 30, 2009. No one knows at this point that it will be extended, or if a new credit will be offered.
What I DO know is that underwriting loans is tough anyway right now, and sometimes delays pop up. Closings can be delayed for a day or two quite easily.
If that first time buyer is planning on getting a home this fall and cashing in on an $8000 credit, it is dangerous to consider closing at the end of November. The closing attorneys will be packed. Their workload will be intense. The loan officers will be chasing underwriters and loan packages like crazy. There will be opportunity for error and delay. And in addition to all that, the end of November comes on a Monday after Thanksgiving weekend, and all the hubbub of Black Friday shopping. It is not a calm time of year.
Closing at the end of November is too risky.
Get out. Get your loan preapproval done. Shop for a house. Close early. Saving a few hundred bucks by closing at the end of the month may be the mistake that costs you $8000.
Why risk it?