Think you missed the $8000 tax credit?  Relax.  If you miss the Nov. 30 deadline, you’ll likely get a reprieve.

An extension and expansion of the popular tax credit is expected to give both new and move-up buyers a tax incentive to buy a home until at least April 30, 2010, longer for military personnel.

And it could come as early as this week.

An overwhelming 85 to 2 roll call vote in the U.S. Senate this week to cut off debate on the first-time home buyer tax credit measure and others pretty much seals the deal on legislation President Obama has already agreed to sign.

If passed into law, the new tax credit would extend the existing credit for first-time homebuyers, worth up to  $8,000!

The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000.

The maximum allowed home purchase price would be $800,000.

A home buyer must have a sale agreement in hand by April 30 and close escrow by June 30, 2010

We’ve been getting a lot of calls recently about the possibility of Congress extending the First Time Home Buyer Tax Credit.  As of right now, I’d give it 50/50 odds.  Certainly, if you are in a position to buy by December 1, I’d strongly encourage you to pursue it, but for those who can’t buy by then, there might still be some hope.

This past weekend, I was featured in an Austin American Statesman article talking about this topic, and how the tax credit is impacting the market:

Agents are hoping for tax-credit extension
AMERICAN-STATESMAN STAFF
Saturday, September 19, 2009 “It’s fairly normal for our market to slow down in autumn,” said Jay Gohil, chairman of the real estate board. “Although we’ve been encouraged by stable home prices and volume in recent months, we are clearly not out of the woods completely.”

Sales pending to close in September were up 10 percent. If all 1,980 transactions are completed, September’s sales total would be 18 percent higher than that of September 2008. Gohil and other Austin-area agents said they’re hoping the federal government extends an $8,000 tax credit for first-time homebuyers that is set to expire Nov. 30.

Associations representing real estate agents, mortgage brokers and builders have been lobbying for an extension, saying the housing industry needs the help. Congressional leaders are pushing for a six-month extension of the credit. The IRS said on Friday… (Get Full Blog Post)

FROM YAHOO! NEWS: The U.S. housing market is rebounding faster than expected. Home resales in July posted the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires Nov. 30. Sales jumped 7.2 percent and beat expectations, the National Association of Realtors said Friday.Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the strongest month since August 2007. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.

The home sales report was another sign that the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession and the worst financial crisis since the Great Depression.

Economic activity in both the U.S. and around the world appears to be leveling out and “the prospects for a return to growth in the near term appear good,” Federal Reserve Chairman Ben Bernanke said Friday.

Okay, so you are pre-approved for a loan.  Now what?  Should you immediately jump into touring every home that meets your wish list?  Unless you have extremely specific requirements, I’d highly recommend that you start researching areas & neighborhoods, before you start looking at homes.

If you’re looking for a 3 Bedroom home, priced between $150,000 and $200,000, the reality is that you would have nearly 700 homes on the market that meet your criteria.  Obviously, it would…  Get Full Blog Post

Here’s an interesting statistic.  When surveyed, 1000 first time home buyers said that they anticipated living in their first home for a total of 10 years.  In a similar survey, 1000 first time home sellers (meaning that they were currently living in their first home) were selling the home after an average of only 4.5 years of ownership.

I think that this is a really informative survey, and over the years, I’ve found these results to be pretty consistent with what I’ve seen from my clients.  Most first time home buyers…  Get Full Blog Post

Most first time home buyers ask us how many homes they should anticipate looking at during the home buying process.  While this can vary quite a bit based upon the buyer’s wish list, we generally find that most of our clients never need to see more than 15.

While touring homes is usually the most exciting part for home buyers, it’s also the easiest.  The negotiations, contracts & closing process are the confusing parts.  These days, buyers are armed with ample research resources to learn most details about a home, prior to ever stepping foot in it.  Assuming that…  Get Full Blog Post

We are starting to hear more and more rumors that interest rates are going to be creeping up over the next year.  This shouldn’t be too surprising to anyone.  Interest rates have been at historic lows, because the federal government had to stimulate the economy.  They needed people to spend money, so they took the proactive measure of lowering rates.  The economy, at least in certain parts of the country, is really starting to show signs of recovery, so now the Federal Reserve has to start worrying about inflation.  Unfortunately, one of the only ways to curb inflation is to raise interest rates.

Don’t be surprised if…  Get Full Blog Post

Breaking news!  First time home buyers can now qualify for a down payment assistance program, which relieves the burden of having to make a 3.5% down payment.  This program is being backed by the State of Texas, and will cover up to 5% of the home’s purchase price or $6,000, whichever is less.  For instance, on a $150,000 home, a buyer is entitled to receive a full $6,000 to go towards a down payment, which would mean little to no out of pocket expenses for the buyer!

This program has JUST been announced and details are still coming in.  There is no word yet, if this is a permanent loan program or if it will expire later this year.  Either way, it’s an exceptional opportunity for those first time home buyers who are having a difficult time trying to save for a down payment!  Because the details of this program are still in the works, please call for the latest information.

You’ve already heard this on every news station there is: ”Expert economists agree: 2009 is the best year that there has ever been to be a first time home buyer!”

FACT: This is a phenomenal buyer’s market with lots of incredible deals.

FACT: Interest rates are at HISTORIC lows. (When the economy gets better, interest rates will go up!) FACT: First Time Home Buyers will receive a tax rebate of $8000 if they buy a home by Dec 1, 2009 (ANYONE BUYING AFTER DEC 1, will miss out on this free $8000 check!)

Read more about Why 2009 is the Best Year there has ever been to be a first time home buyer!

One of the questions I hear most often is, “How high should my first offer be?”

I always coach my clients to understand one very important rule about the way to determine how much their first offer should be.  You should always focus on…  Get Full Blog Post