Count down to Tax Credit Elimination

ALL FIRST TIME HOMEBUYERS MUST CLOSE BY MIDNIGHT NOVEMBER 30, 2009.

Well, that is if you qualify for, and want to take advantage of.... the $8,000 tax credit for purchasing a home. In past posts we went over some of the qualifications for the tax credit such as:

1) You cannot have owned a home in the past three years.
2) Income requirements cannot exceed $75,000 if single and $150,000 for married.
3) The credit is worth 10% of the purchase price of the home up to a maximum credit of $8,000.

Now, what does the December 1, 2009 due date mean? Well it means that your home must CLOSE on or before midnight of November 30, 2009. OR YOU LOSE THE CREDIT.... Make sure if you are presenting offers that you allow a few days to a week for minor delays... Do not risk $8,000! Because you cannot get an extension unless Uncle Sam gives it to everyone.

Exactly how much time does that leave you if you have not even started to find a home? Well let's work backwards. Say to be safe you allow the closing two Fridays before the deadline. That makes it November 20th. Now once the property is found you need an average of 45 days to close. So let's figure the under contract date to be October 6. So if your home is to be under contract by October 6, that allows about seven weeks from today to find your home. Certainly plenty of time for you to find an agent, obtain financing from a qualified lender, and start looking. But, you do not have time to sit on the fence to determine whether or not you want to continue renting for another couple months before looking while you wait to see what the market does.

So, it's time to contact that qualified agent. Marie Zubkoff at 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty. Visit us at http://YourGilbertHome.com Thank you!

New TILA Disclosure requirements. Who is TILA?

TILA is the Truth In Lending Act also known as Regulation Z. A new requirement added for Arizona as well as the rest of the nation for lenders to provide another disclosure. The new requirements apply to all mortgages including primary and secondary homes. Investor loans are exempt.

Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided except for a credit report fee.

THE CLOSING MAY NOT TAKE PLACE UNTIL THE EXPIRATION OF A 7 DAY WAITING PERIOD AFTER THE CONSUMER RECEIVES THE EARLY DISCLOSURE!

Under strict circumstances this period may be waived by the consumer. It may NOT be a standard of practice for the lender to ask the consumer to waive this waiting period.

If the APR changes by more than 0.125 percent the lender must provide a corrected disclosure and wait an additional 3 BUSINESS days before closing the loan. The APR includes the interest rate and other costs related to the settlement of the loan.

Please contact Andrew or Marie for a lender referral if you are looking to purchase or refinance your home in Arizona! The source of this information is the arizona association of REALTORS.