“T Minus 55 and Counting”

55 business days until Thanksgiving, November 26. The following Monday is November 30th. For all practical purposes, November 25 is the last business day of November. In order for homebuyers to be eligible for the tax credit, they must close on or before November 30. With September just underway, December 1st sounds distant. However, a hard look at the calendar suggests the window is closing sooner than one might think. Over 50% of sales taking place in this market have banks/ institutions as sellers. It appears to be taking three to four weeks for banks/ institutions to respond to offers and contracts to be finalized. With more foreclosures hitting the market at attractive prices and more buyers hustling to take advantage of the tax credit before it expires, expect a juggernaut. Additionally the speed lenders can close loans has slowed. New legislation on appraisals and disclosure has drawn out the time it takes to close a loan. Appraisals are reviewed with more scrutiny, and legislation mandates a final Truth and Lending statement must be viewed 3 days before closing. Overall loans require more documentation in today’s environment which takes time to obtain. If an offer is sent today and it takes several weeks to get accepted and 25 days to get the loan approved and closed, then the close date would be right around Halloween. Theoretically, the real estate contract needs to be finalized by the end of this month to ensure closing date does not surpass 11/30/09 and jeopardize the tax credit benefit. I am not suggesting that the window of opportunity closes by end of September. I am suggesting that NOW is the time to act. Now is the time to contact your realtor and develop a strategy of buying a home with the awareness that time is crucial.