Better Hurry to Take Advantage of the First-Time Homebuyer Credit

I hate deadlines, and I love to run right up to them. To procrastinate, I read one of my favorite real estate columnists -- the Washington Post's Elizabeth Razzi, who from time to time answers questions in "Real Estate Live."

In Friday's column, she reminds would-be first-time homebuyers that to take advantage of the $8,000 tax credit, they have to close by November 30 of this year. That means shoppers better make offers pretty quickly to get the break. As a working agent, I speak from experience when I say: mortgage lenders these days are S-L-O-W. We used to write into contracts that buyers had 30 days to get their financing; in a contract one of my sellers sent out two weeks ago, that clause was lengthened to 45 days.

One reason is that the banks fired a lot of people due to their troubles, so everyone left in the back office is doing the yeoman work of three people.

But what it means for buyers is that you're really starting to press up against deadline. If you have to close by November 30 and it takes 45 days to get a loan, you need to start looking for a home by mid-October.


Read More:

• Is the $8,000 First Time Home Buyer Tax Credit Enough to Save the Housing Market?


• What's The Best Time of Year to Buy a House?
• Buying a House in Money Magazine's 'Best Place to Live'