EDINA -- A "tax-credit countdown clock" tics down on the Edina Realty website. It marks the November 30th deadline for new home buyers to close, so they can take advantage of the $8,000 federal tax credit.
"November 30th is when you need to close on the property, that is the critical thing to remember," said Carrie Novotny, a realtor for Edina Realty.
Buying a home is a process and procrastinating is not a very good idea right now. But buying can easily be done, if you start moving now. You first need to find an agent.
"Getting pre-approved can take a half hour," said Novotny.
Pre-approval can even be done online. Make sure to have W2's from the past two-years, paystubs from the past month and work history information at hand.
"Start looking at houses, find one, write up the purchase agreement, make an offer and when they agree, you are under contract," said Novotny.
It's advised you and the seller make a deal by November 1st, which is 30-days before the deadline.
"If you take a couple weeks to look for a house, you can still be under contract by November 1st," said Novotny.
But if you can't find the perfect home, or just don't want to rush into anything...
"If you are a first time home-buyer looking for a home, look for a home, get the tax credit, that's great. But are you rushing to find a house to get the tax credit? That might not be the best idea," said Shelley Jaax, loan officer at Summit Mortgage Corporation in Edina.
"It's a fantastic time to buy, even if you don't make the November 30th deadline," said Novotny.
F-H-A government loans are popular as of late. It only requires a minimum down payment of at least 3.5 percent.
It's important to get pre-approved, because nothing else can happen before that's done.
"It's essential that people get pre-approved now. You have a two-week window or they won't be able to get their loan closed," said Jaax. "There will be a backups."
(Copyright 2009 by KARE. All Rights Reserved.)
