The $8,000 tax credit for first time home buyers is set to expire on December 1st of 2009.  There are talks that this credit may be extended, or modified and extended.  However, if you are in the market for a house you can not count on this extension.

We are advising all of our home buyers to try and be under contract on a home by no later than October 15th.  Currently it is taking only three weeks for the banks to work through a loan and prepare for closing.  However, if everyone and their mom tries to get this tax credit at the last minute the banks are going to be over loaded in October and November.   At the beginning of the year when rates were ultra low we were seeing underwriting times take as long as 45 days.  The same situation could happen again.

There is always a way to get a loan done in less time.  However, if you want to give your self a chance at getting the best rates and best terms you are going to need to be under contract by the 15th of October.  Flexibility is always the key and giving your self enough time to close will ensure that you keep your options open.