Because the Home Buyers Tax Credit deadline was extended and the qualifying income levels have been expanded, this is an ideal time for both first-time and repeat buyers to purchase a San Diego home.
Basic facts Home Buyers Tax Credit:
- The new deadline is April 30, 2010 (June 30th with a binding, signed contract)
- First-time buyers are eligible for a tax credit of 10% of the purchase price--up to $8000.00
- Repeat buyers (those who have lived in one residence for 5 consecutive years of the last 8) can receive a credit of up to $6500.00.
- Income levels--$125,000 for individuals; $225,000 for couples.
- The credit may be claimed on this year's tax return (for 2009).
***Remember that a tax credit is a dollar-for-dollar deduction in what a taxpayer owes. If the credit exceeds the amount owed, a refund will be issued.
Because it generally takes 3 to 4 weeks to process a loan and often an additional month for inspections and paperwork, there are some important and beneficial steps you can take to expedite the purchase of your San Diego home.
Beating the deadline:
- Get pre-approved for a loan. Have your credit report, proof of funds, and employment certification ready to submit.
- Know what you are looking for. Have some well-thought-out ideas about the desired location, style, and price of your new home in San Diego, Ca.
- Supply all documents to your lender in a timely manner.
- Communicate often with your lender. Stay on top of the loan status, closing date, etc.
- Avoid buying a short sale, which is often a lengthy and unpredictable process.
- Take advantage of the expertise and advise of your real estate agent. He/she can be an indispensable asset and guide in your San Diego home buying experience.