The first time home buyer tax credit of $8,000 expires on November 30^th.  Congress has been asked to extend the tax credit but it isn’t looking too likely at this time.

October is already here. If a first time home buyer wants to beat the deadline, how much time would be needed to close the deal?

Most lenders say they need a minimum of 30 days to close a loan and many will not guarantee that everything will be wrapped up by Nov. 30. Just to be safe, it’s best to get started as soon as possible with as much documentation as possible. The number of applicants will increase as the deadline for the tax credit approaches. FHA-insured loans can take even longer and everyone in the lending industry expects a late tax credit rush.

A crucial element in getting loans processed and closed in a timely matter is a complete file. If you have spent time only shopping for a home and not compiling your financial package, here is a list of the top five documents to immediately prepare for your lender:

1.     Copy of driver’s license and Social Security card

2.     Pay stubs (covering most recent 30 days)

3.     W-2 and 1099 statements for 2008 and 2007

4.     Copy of 2008 and 2007 federal tax returns with all schedules

5.     Bank statements for checking, savings, money market, CDs and IRAs (covering past two months) including account number and bank.

Often the initial underwriting loan review will trigger additional requirements needed from the borrower. With new rules now in play regarding appraisals and disclosures coupled with the overall tightening of underwriting guidelines, it will be key to start the loan process as soon as possible in case additional documentation or verification need to be met for final loan approval.

The bottom line is that if you want to buy a home utilizing the tax credit you need to hurry up and find a home and get everything to your lender as soon as possible.  So call your Lender and Realtor today!

http://seattle.bizjournals.com/seattle/stories/2009/10/12/daily20.html

http://www.federalhousingtaxcredit.com/2009/faq.php