$8000.00 Tax Credit - The New Rules

For home buyers that have not owned a home in the last three years, the $8000 tax credit is certainly a motivating reason to buy soon. But soon may be sooner then they think.

A lot of buyers are already aware that the date of closing must be before December 1st, 2009, but that can be very confusing. The buyer would need to find a home, write and negotiate the offer, allow for inspections, lending time lines and an agreed closing date to occur before December 1st, 2009.

The time it takes typically to get from point a to point b is about 30 to 45 days. And that is only if they are buying a home that is not a short sale, not a foreclosure and not a bank owned.

So here are Tony Rays New Rules for buyers who want to take advantage of the $8000 tax credit:

• Closing Date: Should be on or before November 20th to be safe and allow for any delays that could cause the date to be extended.

• No Short Sales: Short sales, REO's, bank owned and foreclosed properties should not be considered as an option. These types of homes can take 2 to 6 months to close. Sometimes, they take a few months just to get an acceptance on the initial offer. Buy a home that is not in a distressed situation. Make sure you ask about the status of any home you may be considering.

• Lending Time Lines: They have changed recently. No more quick closings. Make sure you are working with an experienced lender who understands all of the new rules. I highly recommend Phaedra Wilson at Sunstreet Mortgage if you are buying a home in Arizona.

• Get Pre-Qualified: This will not only strengthen your offer, but could also help the process go quicker and keep you from any costly delays. Remember, most sellers will not look at an offer that does not have an LSR attached (a Loan Status Report is a pre-qualification document from a lender). The more homework you do up front, the better your chances of getting an offer accepted with your terms.

Hopefully, I've given you some good pointers to help you take advantage of the $8000 tax credit. Obviously there are a lot more things to consider understanding that each buyers situation is different. Make sure you have an experienced Realtor and Lender on your side and you should do just fine.

Tony Ray

Tucson Real Estate - Homes for Sale in Realtor Database

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