First-time home buyers looking to take advantage of a tax credit need to watch the clock. People should have negotiations settled by mid-October at the latest if they want to close on the sale by the deadline to qualify. First-time buyers can get a fereral income tax credit of as much as $8,000 for homes purchased before December 1, 2009. That means sales must close by November 30th.
It can take 45 to 60 days from the time you get approved for a mortgage to the day you close on the sale. To speed a home purchase along, it's best to be pre-approved for a loan before you start house hunting. And expect a rush of last-minute applicants to create a lacklog for mortgage companies and potential lenders.
The home must be in the U.S. and must be the buyer's principal residence for at least 3 years. To get the full credit, married couples filing jointly must have a modified adjusted gross inclome of $150,000 or less, while single filers must make $75,000 or less. For more information, visit WWW.IRS.GOV