Home Buyer Tax Credit Will End Soon

If you're a first-time home buyer hoping to cash in on the $8,000 federal income tax credit, you need to find a house and get your offer accepted very soon. You must own the house by Nov. 30, 2009 - the Monday after Thanksgiving - to qualify.

Most escrows take a minimum of 30 to 45 days from the day both parties have signed the purchase agreement until the deed is recorded. Unless you enjoy playing "chicken" with your finances, plan on closing escrow before Nov. 15 because loan, escrow and county offices are short-handed in the days before Thanksgiving and closed the day after. You'll need to open escrow by mid- to late September.

I can help you get to the finish line if you are well-prepared, plan your home search, make fast decisions, offer your best price, and be willing to move on. Few homes currently listed for sale will qualify - forget short sales, the acceptance process takes months you can't afford. And you have lots of competition from others who want to qualify for the tax credit. Here's how we can help you get the home you want and the tax credit:

Call me: If I know you want to claim the $8,000 tax credit, I will schedule the time necessary to show you homes that are on your "short list" and alert your Tarbell Success Team to ensure your needs are met.

Get Prepared: A loan officer can qualify you and give you a workable price range to make sure you end up with affordable monthly payments. It isn't enough to be pre-approved by a direct lender. You need to be pre-approved by a direct lender who can schedule the appraisal, verify your information, prepare loan documents, and fund the loan on time. Sadly, not every direct lender can do that. If your lender can't, I will introduce you to a lender who can perform.

If you haven't talked with a loan consultant yet, don't fret. The direct lenders I work with can qualify you quickly and they can get your loan funded on time. Gather this information: 1) Last 2 years federal tax returns; 2) Last 2 years W-2s and/or 1099s; 3) Current months paystubs; 4) Last 2 months bank statements, checking, savings, mutual funds, stocks; 5) Divorce decree, if you're divorced; 6) copy of your driver's license and Social Security card if you are applying for an FHA or VA loan; and 7) Certificate of Eligibility or DD214 if you are applying for a VA loan. Keep all this information updated until escrow closes.

Plan Your Search: Your free Listingbook account (enroll at www.ilajosephs.com) shows where houses in your price range are located. Find the REO (bank-owned) and Standard (regular sale) properties available by typing "REO" or "Standard" in the "Remarks" field under Quick Search. You may need to re-think the cities or neighborhoods you are considering to find homes in your price range. Drive by the homes you are interested in and check out the exterior and the neighborhood before we plan a visit. Don't waste your time going inside if the neighborhood turns you off.

Make Fast Decisions: If you see a house you like, make an offer that day. If you wait a day or two, it may be gone. At the same time, please - please! - don't write offers on houses you really don't like or don't meet your needs. Buying a house is a huge commitment and that $8,000 tax credit isn't worth getting if you hate the house afterwards.

Offer Your Best Price: I can provide recent sale prices of similar homes in the area to help you determine your offer. If a house is "special," you will want to make the highest offer you can. Don't offer less, thinking the seller will counter with a higher price. It won't happen. Someone else's offer will be accepted.

Be Willing to Move On: Keep looking and making offers until your offer is accepted, you've reviewed all the disclosures and gotten a professional home inspection.