Will the sweet smell of sales now suddenly turn sour in May?

We guess that time will tell soon as it appears the Federal tax credits for eligible buyers and sellers will come to a close as of next week, April 30, 2010, the last day to be under contract to purchase and be eligible to apply for the tax credit. Even those who are lucky enough to get under contract must close by June 30, 2010. So for all those buyers and sellers who've been a bit hesitate better step it up this week or miss out on a nice credit!

Lenders are very busy (and very grateful for that!) and you may indeed need more than a 30 day lock during this time so even though you may get better pricing for 30 day locks a longer lock will protect the interest rate you obtained. Getting an extension on your original lock will be easy enough but it usually isn't free. Your extension could cost anywhere from .125% of your loan amount to 1.0%, depending on where the rates have gone since your lock. If they've stayed fairly close to your original amount it will be a lower cost but if the rates have increased considerably, it will be more costly. This is an expense that can be avoided, so at least ask about a longer rate when discussing your options with your loan officer.

We're keeping our fingers crossed for all our sakes! Be safe out there!