Profile picture for raebis

How long should I wait to purchase my home? I'm interested in the proposed 15k Tax Credit

I'm wondering how long I should wait to purchase a home.

I know the current 8000 first time buyer credit requires me to close before Dec 1, 2009, however there are bills in the Senate and House that will push back the deadline as well as increase the 8000 credit to 15000, and remove income / first time buyer restrictions (bills S.1230, H.R.1245)

There is a chance that these bills will never make it to actual law, which would mean I definately need to close before Dec 1 in order to take advantage of this credit.

After saying 'for sure, i want this house', how long does it normally take to close?
  • July 06 2009 - US
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Answers (14)

Profile picture for BMFPitt
They were trying to get 15k last year, too.  I think more than likely they'll just extend the 8k bribe.  If not, then it can take anywhere from 15-90 days to close on a house, depending on the circumstances.  But since 90% of what's out there is unoccupied foreclosures, you should be able to do most deals in 30-45 days if you have financing lined up ahead of time, etc.
  • July 06 2009
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By raising the tax credit to 15k from the current 8k the cost of the program would be astronomical. It's unlikely, given the economy and the Obama Admin. desire to do health care reform, that the 15k program will go through.

I am not entirely convinced the 8k program will be extended, either. But my Zuesstimate is that it's 50/50.
  • July 06 2009
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Profile picture for mrfnuts
 ...I know the current 8000 first time buyer credit requires me to close before Dec 1, 2009, however there are bills in the Senate and House that will push back the deadline as well as increase the 8000 credit to 15000, and remove income / first time buyer restrictions (bills S.1230, H.R.1245)...

Oh hell, at this point why not hold out till the Feds offer to buy your house for you with taxpayer (and children and grandchildren of taxpayers) contributions?  I mean if they chip in $500K eventually, will that not 'stabilize' (lol) the housing market and set a nice price floor for which the asset class known as a 'house' can raise in perpetuity from there?  Win-win right?

By raising the tax credit to 15k from the current 8k the cost of the program would be astronomical. It's unlikely, given the economy and the Obama Admin. desire to do health care reform, that the 15k program will go through.

Are you talking about the same Obama Admin that set a budget that would even make the drunken sailor Bush blush?  I mean, the epitome of fiscal recklessness who 'just' set a deficit record only last year has already been dwarfed in less than 6 months (and by 4 times).  At this point 'nothing' will surprise me.

  • July 06 2009
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Profile picture for real estate mike
The real question is, will prices in your area drop more than the $8k and therefore wipe it out. In my opinion, get preapproved for financing and search for a property in your price range. If you find one that's too good to pass on then start low compared to comps and don't let the price get out of hand where you end up paying market value. In the event you don't find such a deal, if you're comfortable renting continue to do so. What area are you looking to buy in? That will make a huge difference based on the local economy there.
  • July 07 2009
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Profile picture for BMFPitt
By raising the tax credit to 15k from the current 8k the cost of the program would be astronomical. It's unlikely, given the economy and the Obama Admin. desire to do health care reform, that the 15k program will go through.

Never underestimate the lengths they will go to in order to prevent housing from becoming affordable.  And giving welfare to house debtors has much more bipartisan appeal than health care socialization.
  • July 07 2009
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Profile picture for raebis
thanks for the replies!


...I think more than likely they'll just extend the 8k bribe.  If not, then it can take anywhere from 15-90 days to close on a house, depending on the circumstances.  But since 90% of what's out there is unoccupied foreclosures, you should be able to do most deals in 30-45 days if you have financing lined up ahead of time, etc....

so it sounds like i need to leave myself a month minimum to close. What is 'financing lined up ahead of time' - is this more than just a prequalification letter & GFE ?



...Oh hell, at this point why not hold out till the Feds offer to buy your house for you with taxpayer (and children and grandchildren of taxpayers) contributions?  I mean if they chip in $500K eventually, will that not 'stabilize' (lol) the housing market and set a nice price floor for which the asset class known as a 'house' can raise in perpetuity from there?  Win-win right?...

i don't think you're being serious here? your answer is not helpful nor related to my question


...What area are you looking to buy in? That will make a huge difference based on the local economy there....

80014ish. What should I look for in regards to local economy?
  • July 07 2009
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If you can buy now....buy now. The gov't may extend the $8,000 but i highly doubt they will raise it to $15,000. Anything is possible i guess. Interest rates are good and several parts of the country the real estate market is seeing improvement. Price are still very low ...and with foreclosures and short sales, some very good deals are out there.
  • July 07 2009
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Profile picture for sunnyview
I can't see the 15K going through myself. If you are looking to buy as a first time buyer and your market is relatively stable, I would take the bird in the hand of 8K and choose my house wisely.
  • July 07 2009
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Profile picture for mrfnuts
i don't think you're being serious here? your answer is not helpful nor related to my question

I'm being facetious.  It was more to lend impact to the concept of if you believe that the federal government is giving you that $15K you are holding out for, or if just every other schmuck in the country that pays taxes (and their children) that are giving you that money.  Pause and think about it before you answer.

  • July 07 2009
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Profile picture for blue screen exile
Or if that $8k or $15k is just temporarily propping up values and you will immediately lose that "equity" once the "incentive" is over.

We all know the incentive is only about the banking industry's balance sheets and has nothing to do with the home buyer nor home owner.  The government has always been more than happy to give away tons of our money to the "mega corporations", even if it means they have to borrow from China or Japan to do so.
  • July 08 2009
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Profile picture for raebis
...I'm being facetious.  It was more to lend impact to the concept of if you believe that the federal government is giving you that $15K you are holding out for, or if just every other schmuck in the country that pays taxes (and their children) that are giving you that money.  Pause and think about it before you answer.


Again, i'm unsure how this relates to my question. However, i do want to know whats the interest rate you're charging 'the concept' when you 'lend' it 'impact'?

p.s.
i definately took pause and thought about this one :-D
  • July 08 2009
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Right now you have a sure thing in the 8K tax credit.  You are right you have to close before December 31 this year.  Considering the time it takes unless you are paying cash to close a transaction you would be wise to consider moving forward at the present time. 
You didn't say where you were looking to purchase or what your time frame is to make the purchase.  Those things are all of vital consideration.  Will the 15K pass as most have said it's very unlikely, interest rates are going up, you probably won't see them fall any time soon again.  Taking all the facts you have into consideratioin and what is being offered now the speculation just wouldn't be worth it. 
  • July 08 2009
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After saying I want this house for sure, how long does it take to close?
Well that depends on a number of things.
I usually shoot for a 30 day window to close once the contract is signed.
That window is dependent on the FICO score of the buyer, the type of loan, the amount of money being put down, the time it takes for inspections, apraisals, and the paperwork done by the lending agency. 
It also is dependent on the buyer making sure that their credit stays stable at this point in time.  (IE don't buy a new car now). 
If all goes well and everything is as it should be 30 to 45 days from start to finish is a good estimate. 
  • July 08 2009
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Profile picture for raebis
Perfect, thank you!
  • July 08 2009
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