Time is running out to take advantage of the $8000 tax credit for qualifying purchases of a home before Dec. 1, 2009. That sounds like several months right? No reason to get in a hurry… Well with additional delays in almost all forms of mortagages right now the days of the 30 contract to close are gone. On top of the HVCC that effects appraisals comes Regulation Z which is essentially more Truth in Lending rules. It shouldn’t change the mortage process a whole lot, but will add another week at least to the process.
For example, I called the other day to check on the progress of a transaction on one of my listings. I wanted to know if the appraisal had been ordered because it had been 2 weeks and I had not been contacted for access. In short the mortgage broker had to wait an additional week to even order the appraisal because the new regulations state that certain parts of the loan process (like ordering the appraisal, an important part) cannot happen until XX number of days after the borrower has signed his loan application. Sounds good in theory, but will underwriting taking sometimes 2 weeks the broker needs to do anything possible to speed the process along to even meet a 45 day close and that includes ordering the appraisal at the earliest practical opportunity.
What used to be a 45 day transaction is closer to 60 days now, and when you do the math backwards that puts us at September 30. Less than 45 days away. If you are contemplating purchasing a home this year and wish to take advantage of the $8000 tax credit it’s time to get moving. Your first step is visiting a mortgage broker or lender to get qualified. This will give you direction for your next step, which is selecting an area and working through the various needs -vs- wants in your home search.
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