A Race To Beat The Clock
As buyers begin to realize that time is running out to qualify for the federal program, the wheels of the real estate closing industry are beginning to be slowed by the increased number of transactions which are a result of the program.
When the legislation was passed, apparently, little thought was given by Congress to the actual deadline. This year Thanksgiving falls on November 26 and the deadline for closing, November 30, falls on the following Monday. As anyone who has been involved in a real estate transaction in the past can tell you, the closing process can be fraught with peril. From the hammering out of the contractual details, to qualifying for the mortgage loan, to physical inspections, to ordering title work, any number of things can come up to potentially derail the closing process. For those hoping to take advantage of the program, there may be no second chances.
So what must real estate brokers know about this federal program? The bottom line is that all real estate brokers must be certain that their first-time homebuyers know that there must be adequate time to deal with all of the possible snags in the contractual and closing processes. To take advantage of the program, it’s undoubtedly best that a first-time homebuyer execute a contract no later than mid-October and plan to finalize the home purchase before the Thanksgiving holiday, which officially begins on November 26th. It is always possible that the income tax credit may be extended, it’s certainly not guaranteed.