Just The Facts: Homebuyer Tax Credit Extension
By now, you probably know about the Homebuyer Tax Credit. It came, it was successful, and it was extended. In this rendition of ‘Just The Facts’, we give you the quick & dirty concerning the Homebuyer Tax Credit extension.
- The Important Dates: The credit has been extended from November 30, 2009 until April 30, 2010. By that time you must have you new home under contract. From then, you have 60 days to close on the property, which gives you until June 30th to seal the deal.
- The Important Numbers: For first-time homebuyers, the credit computes to 10% of the purchase price of your home, with a maximum credit of $8,000. So if you buy a $70,000 home, you will only get a $7,000 credit. The same is true for ‘non-first-time homebuyers’, except they have a maximum credit amount of $6,500. This is a new twist to the credit, as current homeowners were excluded in the original credit.
- The Important People: If the timing is right, this tax credit could afford you with a wonderful opportunity. However, to make the most of the opportunity, you need to be working with quality professionals. Here are a few important people to surround yourself with: a CPA (to make the proper tax steps), a Mortgage Lender (to ensure you are getting the best rate on the most applicable loan), a Realtor (to see that you are getting a good deal on a home – after all, it is a buyers market), a Home Inspector (to ensure you are buying the home you think you are buying), and an Insurance Broker (to be certain your largest asset and its contents are protected).
- The Important Catch: Out the sudden influx of new homebuyers, there has grown a strong presence of fraud. As a homebuyer, educate yourself. If anything seems fishing, seek a second opinion. When dealing with each of the previously mentioned professionals, ask them for recommendations for the other role players. Without a lot of work, you can discover the best of the best in your area.