By CHRIS KISSELL
bankrate.com
Is it too late for first-time homebuyers to snag the federal government's $8,000 tax credit?
The credit -- intended to boost flagging home sales -- is set to expire Nov. 30. Congress is weighing several proposals to extend the tax break into 2010, but passage remains uncertain. Procrastinating home shoppers racing to beat the late-November deadline still have a narrow window to wrap up their purchases, says Jeff Lazerson, president of Mortgage Grader, a mortgage broker based in Laguna Niguel, Calif.
"But buyers better hurry," he says.
Pick an agent who works fast
Lazerson urges tax-credit hopefuls to work with at least three agents simultaneously until finding one who "demonstrates that he or she is really hustling." Buyers should also take an aggressive, hands-on approach to their search, he says.
"Proactively drive through neighborhoods and knock on doors to learn more about appealing homes for sale that are nearby," he says.
David Kuiper, a mortgage planner at First Place Bank in Holland, Mich., also says buyers still have time to qualify for the credit, but only if they "enter a contract in the next week or so."
He suggests getting preapproved for a mortgage immediately and asking a trusted real estate agent to recommend a mortgage professional who has a record of closing on time.
Don't wait until the last possible day to close
"Plan to close by Nov. 20, if possible," he says. "Nov. 23 starts the week of Thanksgiving, and after the holiday there is only one business day left to close."
Kuiper says shoppers who dream of finding a great deal on a distressed property can forget about closing before the Nov. 30 deadline.
"Don't even bother looking at short sales," he says. "There is no chance that you'll negotiate a contract and close in this short time frame."
Chris Sipe, senior mortgage consultant at Mason Dixon Funding in Frederick, Md., says even if shoppers make heroic efforts to speed up the purchase process, "it will be difficult to meet the deadline."
Part of the problem involves new rules and regulations that have slowed mortgage approvals, he says. This includes the Home Valuation Code of Conduct rules, or HVCC, governing appraisals that went into effect in May.
Behind the 8-ball
"Much of the legislation coming out of Washington has made the standard process of approving and closing a loan much more intensive and lengthy," Sipe says.
The nature of today's transactions also makes a speedy approval less likely, he says.
"With most of the market being short sales and foreclosures, it takes longer to get responses from banks," Sipe says.
Homebuyers with the best chance of closing quickly on a sale include those with mortgages from governmental agencies such as the Federal Housing Administration or the U.S. Department of Agriculture.
"(They are) not subject to HVCC, so we can get the appraisal turned around faster," he says. "That makes a huge difference."
