Uncle Sam Wants to Give You a Gift!

This does not happen very often, readers, and it won't last forever, so let's remind ourselves (and somebody you care about) about this fabulous program for first-time-home buyers.

If you have not owned a home in the past three years, and fall within the household income limits, you have the distinct pleasure of, and extreme joy in reducing your income tax bill by as much as $8,000 come next April 15.

The catch? You have to find, purchase, and close a home no later than the last day of November, 2009. In reality, that leaves you about two months of home shopping time before the calendar cuts you off.

Because the closing for a home purchase can be no later than November 30, 2009, your offer to purchase a home must be accepted by the seller and your mortgage application process started no less than 4 weeks prior to the scheduled closing. Unless, of course, you are paying for the property with cash, no mortgage. The timing of your actions are crucial in this process; the mortgage lenders are taking longer to get a loan approved and ready to close than they used to brag about, due to constraints recently built into the system. The major culprits in this scenario are the changes in appraisal rules and the new Truth In Lending requirements imposed on lenders. But those are for another day.

And the media has been telling you the truth; this is a WONDERFUL time to buy a home, due to the reduced values of homes in our market. In theory, if you were to purchase a home this year, and own it for at least 3 years, you have an excellent change of owning a home with vastly improved value, and thereby more equity in your financial portfolio!!

So if you have been mulling over the question of what to do about buying a home this year, are wondering if your finances allow you to secure a home of your own, let's talk about it. I can help. I LOVE helping clients save money!