The recent signing into bill of the home buyer tax credit by President Obama is increasing sales in Northwest Indiana.
While we are seeing an uptick in mortgage originations and many real estate agents are seeing an increase in buyers, a recent article in the Northwest Indiana Times confirms the improvement.
It seems that many local first time homebuyers have taken advantage of the $8,000 home buyer tax credit thus far, and with the extension firmly in place, many more will soon be able to. Also, since the extension includes a provision for “next time” homebuyers of up to $6,500 who currently have owned their own home for five or the past eight years, many additional homes should be sold.
There are a couple great ideas that come to mind for those who qualify for the tax credit.
- Many empty nesters and those approaching retirement age may think about downsizing into a home that may fit their needs better. If they have equity in their current home when they sell, it’s possible to greatly reduce future mortgage payments and put some additional cash in the bank for later expenses.
- Since there are still loan programs that require no money down, it is actually possible for a home buyer to get paid to purchase their home by receiving a check from the government.
If you are intending to buy in the near future, or just weighing your options, you need to know that you have to have a written purchase agreement in place by April 30, 2010. While this seems like a long time away, someone who has less-than-perfect credit may find that they don’t currently qualify for a mortgage and have to scramble to fix their credit issues before the deadline.
Even if you are not planning to buy for several more months, I would suggest speaking with a qualified mortgage professionalsoon. Losing the dream home you find later because of issues with a mortgage (that could be taken care of now) can be heartbreaking to say the least.
Many others are finding their next home and getting a significant tax credit from the government. Shouldn’t you be next?
Scott
Scott Swinford, your Northwest Indiana Loan Guy
