With one month remaining for the federal Home Buyer Tax Credit, most individuals are racing to close their purchase by June 30 to qualify for the $8,000 tax credit. There are others who would rather wait, in hopes that housing prices will further drop without the credit.
Some feel that the only reason they will be able to purchase a home is due to the credit. If this is the case economists state that that individual is not financially ready for a purchase. We are not saying that $8,000 for first time buyers and $6,500 for repeat buyers is a small amount of money, but this should not be the determining factor for your purchase.
Individuals should not rush into making a purchase. For example, if you see a home and it’s not what you were looking for, do not purchase just for the sake of the tax credit.
Sellers are also not as lenient when negotiating when they know that individuals are already receiving some type of credit. A survey was released a week ago confirming that many were in fact eager to receive the tax credit. The purchase index had risen about 6.8%, compared to the previous week.
The process of purchasing a home, getting approved for a loan and getting the best interest rate is hardly comparable to many years ago. Lender are extra cautious about who they are lending too. The best step to take towards your goal of purchasing a home is maintaining a decent credit score and making sure you meet the rest of the lenders qualifications.