Tuesday, April 06, 2010

Still confused about the first-time homebuyer tax credit?

We've been contacted by several consumers and clients with questions about the federal first time homebuyer credit even this week. The most confusion surrounds the April 30th deadline. Understand the deadline requirement and you will understand there is still time to take advantage of the credit.

1. Eligible first time buyers must sign a purchase agreement by April 30th. This is not a "closing". You're not necessarily locked into the deal as you will still have attorney approval, mortgage contingency, inspection contingency, approval of minutes, budget, by-laws (if a condo) etc... But, you will be eligible for the credit should you make it to the closing. If you don't know this process, call us!

2. You must "close" the transaction by June 30th. This means you must own the home by this date. There will be many closings the last week of June and it may be a good idea to try to close your purchase prior to the last week of June for several reasons.

If you have been casually or seriously looking at property and want to take advantage of the credit, we can help you make educated decisions now. You may also want to revisit several of the basic facts about the first time homebuyer credit HERE.

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