When Should I Begin Looking For A Home In Order To Beat The Tax Credit Deadline?

 

NOW! While it may seem April 30 is a good deal in the future, the reality is it may take some time to purchase a home, particularly if you intend to obtain a mortgage for it. Typical loans now close in a minimum of 30 days and often close in 60 days. When you factor in 20 to 30 days to find a home, go through the negotiations, and seal the deal, you are now looking at 90 days from start to finish. On January 30 only 90 days are left until the deadline.

While it is possible to complete the whole process in 45 or 60 days, do you REALLY want to take that chance by waiting until February, or worse - March? Even if you only need a weekend to choose a home, there are other factors to consider. How quickly will the lender be ready to close the loan? What if the deal falls through during the negotiation process and you have to start looking again? What if the inspection finds a major defect and you want out?

My advice to you is start looking now. Interest rates are still hovering around a historically low 5%. As more buyers enter the market, competetion becomes more fierce and multiple-offer situations are more common. The sooner you start the better chance you have of getting the home you want and snagging the sweet tax credit as a bonus!

W. Todd Hess
www.HuntsvilleAlabamaHouses.com