Tax Credit closing deadline

A bill that would extend the U.S. Homebuyer Tax Credit closing deadline from June 30 to Sept. 30 was passed Tuesday by the House of Representatives. The Homebuyer Assistance and Improvement Act of 2010 (HR 56232) passed by a 409-5 margin.

The measure now goes to the Senate, which last week defeated a bill that contained a similar amendment. The outcome of the Senate vote is seen as uncertain.

If the extension passes in the Senate, it would give homebuyers who were under contract by April 30 more time to complete their sales. The National Association of Realtors estimates that as many as 180,000 buyers could miss out on the credit without an extension because of circumstances beyond their control. Short Sale and REO transactions are holding up many of these closings.

"RE/MAX agrees with the National Association of Realtors leadership on the idea of extending the tax credit closing deadline, because it’s the right thing to do," says RE/MAX Chairman and Co-Founder Dave Liniger. "We’ll continue to speak out in favor of the extension."

Liniger urges homebuyers who are waiting to close to stay in touch with their Realtor and contact their U.S. senators to urge swift action on the tax credit.

Article courtesy of REMAX. Contact a REMAX agent today.

Home Buying Checklist for First Time Home Buyer

1. Get Pre-Qualified before you go house hunting to understand you financial picture
2. Repair your credit. You can start by getting a free copy of your credit report.
3. Home Buying Timeline: 2-3 month from mortgage approval to Closing depending on credit.
4. Find an agent with First-Time Home Buyer experience. One of the most costly mistakes First-time home buyers make is not understanding Agent and their duties. Many rush off and find a home then assume the Listing Agent of the home they chose will represent both parties equally. This is never the case, even when the Agent listing the home says he will act as an intermediary in the transaction. Why? Because the listing Agent already knows so much about the seller that he will struggle to now act in your best interest too. Not even a lawyer would put himself in this situation. Home buyers should always have their own agent whose only duty is to him/her.
5. Understand the balance between your income limitations (your budget) and the home you want/need. Keep a list of the homes you see and record each homes pros/cons. Hint: Use mnemonics or memory tricks to distinguish the different homes you tour such as "123 Main is the house with big blue room" or "123 Main is the foreclosure" etc...
6. Once you decide on a home, you and your agent will sit down and write an offer. If you are lucky this will be an open and shut case. Although, if your have many contingencies or want allot of concessions (like I want 4% closing cost plus all the appliances plus etc...) this process can take a long time.
7. If your offer is accepted then the time clock starts to run so you need to get all your ducks in a row. You will need to apply for a mortgage, get the home inspected, your lender will require an appraisal, you will shop for homeowners insurance (and maybe flood insurance), you may want to buy a home warranty (about $450) and arrange for closing agent.
8. Get Final loan commitment from your lender
9. Do a walk through of the property.
10. Closing day: Closing procedures vary from transaction to transaction. But generally speaking you will exchange payment (certified funds, usually a cashier's check) for the keys to the house. You will meet at the escrow office and a closing agent will walk you and the seller through all the paper work to put the title to the house in your name, verify your insurance, sign the mortgage commitment, secure your down payment and closing cost and other documents. Make sure to have a picture i.d.

95 days left till $8000 Tax Credit is gone

Don't wait till it's too late. First-time home buyers can take advantage of this credit only if they close on a home by 11/30/09. Home buyers are warned that due to mortgage approvals, inspections and other steps in the buying process, they will need to be under contract to purchase by early October. Preview a video at www.russell-realtor.com/$8000-tax-credit.html