So You Made The April 30th For The $8,000 Tax Credit, Now What?

Kenneth Harney,  a syndicated newspaper writer, that I look forward to reading every Sunday morning had an article that should have appeared in every local newspaper. His article provoked several thoughts with regards to the mad rush for the $8,000 tax credit. During the last week of April I received a number of requests for pre-approvals to go with the offers that my referral partners needed to submit to the prospective seller’s agents. The problem was that I could not grant such documents because in several occasions I had not had a chance to review the necessary documentation to review the review worthiness of the borrower to repay such loans and with the added regulations I can’t expose myself in such fashion.

That being said, I wonder what kind of expectations are set for the prospective buyer. If buyers fail to get their paperwork in time and/or the transaction involves a short sale, chances are the deadline will not be met.  Several things to consider here. With the federal additions of  days/weeks before transactions can close and lenders contraction of staff in underwriting, processing, etc. due to a reduction in activity over the last couple of years, as the June deadline approaches, will the lenders be able to deliver the loans so the buyer can get the $8,000 credit?

Here in California we are in a fortunate position. Our Governor signed a new bill that would create a $10,000 tax credit through the middle of 2011. Although it would be nice to get the combined $18,000 credit for first time home buyers, buying in California has an added benefit.

Please help us deliver what we promise. We are in a different environment than we were 4-5 years ago with the elimination of stated deals and 100% financing. I believe in teamwork when it comes to my Realtor partners and this is a time that we need to strategize every move that we make. Get pre qualified before you make offers. It prevent disappointments.