Hey First time buyers…. Where will you be when the music stops? With the combination of new regulations that are making the lending process more cumbersome, and the looming deadline for the first time buyers credit (that’s right, I said Looming!), we are about to see a buying frenzy develop in the below $300k purchase range.
The first time buyers $8000 tax credit will only go to those buyers who close their transactions before the end of November. With the new MDIA regulations coming into play, loans will now likely take an average of 45 days to close. So that means buyers need to be IN CONTRACT no later than October 15th to close on time. And what happens to those buyers who get into contract to purchase, and then discover they need to pull out for some property inspection reason? They will be totally scrambling to find a suitable property and be fairly under the thumb of that seller. Do you think any intelligent seller will make many concessions on a repair addendum, when they know that if this buyer doesn’t close in 3 weeks that they will miss out on $8000.00 of free money?
My advice to first time buyers is this: GET IN THE MARKET NOW. Give yourself time to find the right property and be in the best possible negotiating position. And as always, feel free to contact me for your mortgage funding service. I’m always available for readers of my blog!