First Time Home Buyers

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Pinellas County Homes, Real Estate

The home buyer tax credit has been extended (close on the home by June 30, 2010). That means, for the first time home buyer, that there is still time left to find a home and get that mortgage. The prices of homes in your neighborhood are probably the lowest they have been in a very long time, so picking up that first home right now is the best choice. However, many first time home buyers do not anticipate the time it takes to get a home closed, so they may be waiting too long to receive the tax credit. Here are a few other reasons why first time buyers need to jump, right now.

The Recession is Nearly Over

We are heading out of the recession and when money starts flowing, the government plans set in place to promote sales and economic movement are going to be pulled. This means no more incentives for first time home buyers. It also means the banking and lending companies may not be as lenient toward new home buyers.

Appraisals are Wacky

Changes in the home appraisal rules have put the brake on first time home sales. These new rules are causing delays in the closing process for homes which means the first time home buyer may not have much time left to close before the end of November. The average time from application to close is two months.

The $$$ Billion is Running Out

The programs may be (re)extended if the government feels additional help is needed to bail out the real estate market, but just like the Cash for Clunkers program, it could also be pulled and halted. If the first time home buyer misses out and the program is discontinued, there will be no huge tax advantage.

Inventory Falling

Homes sales are on the rise and that means inventory numbers are falling. The fewer homes available in a given area, the higher the prices on those homes will rise. This could mean disaster for the first time home buyer who wants to take advantage of the affordable home prices we have seen as of late.

Buying a new home is a huge decision, but that does not mean the first time home buyer should not get the lead out of their feet and move to the mortgage office. With a LOT of luck, they may still qualify for the tax credit.