For those you First Time Home Buyers out in the market place looking for your first home, you know that homes in the $200,000 and under price range are selling in days (sometimes hours) and not weeks or months. The current low interest rate environment along with the Tax Credit of $8000 has caused this segment of the market to really heat up. Properties that come on the market often receive multiple offers the first day. I have seen several of my buyers bidding on HUD homes be out bid by as much as $18,000. Clearly the buyer’s market is no more at this price point.
The down payment assistance programs that are available through the various City, State, and County agencies are also extremely busy due to the large number of applicants wanting to take advantage of the tax credit. I spoke to one agency and was told that they are 60 days out in their reservations for down payment assistance. Couple this with the additional time needed in underwriting departments due to higher quality control measures and increased volume due to the low rates and refinances, a transaction that once took 30 days can easily stretch to 75 to 90 days very easily.
For those of you considering buying your first home, the time to act is NOW! With the Tax Credit deadline of 12/1/2009 (you must be closed by 12/1/2009), that does not leave much time to get your financing in order, shop and find a home, and get it closed. So don’t waste another moment, start today.
Andy Jorgensen
Platt Park Mortgage
