When should i Buy a house?

[JTeLarkin08]

Ok i was planning on trying to get a house around christmas next year, however my real estate agent/friend told me that the 8000$ government rebate will be up in april and they are not planning on extending it again. as long as you are in a contract b4 the deadline you get the 8000$. You do not have to close by then. So i was thinking about gettin into a contract in april and then closing in July! Do you guys think this would be smarter than waiting till dec to buy. I mean i think it would be stupid to not take the govt up on the 8000$ when i was planning on buying a house 5 months later.
JT

[cosmiccowboy]

I agree that if you are a first time buyer planning to buy within the next 12 months that it would be stupid not to take advantage of the $8000 rebate. I would start looking now. You never know when you might run across a foreclosure or distress sale that would save you even more.

[angrybroadhead]

There will be another "x" for clunker program by then! They are already talking second stimulus!

I say look and if you find a house you really want for the money you cannpay, the pull the trigger. I bought the 8k was a tax credit which is nowhere close to 8k cash. In the grand scheme a true value on a house with intrest rates being great is better than any rebate you will ever get.

Keep in Mind very few people ever plan the market and then have everything fall in place like they want!

[Speedgoat]

When the car ceases to run.........................Oh, I thought that you said Horse.

[CornDog]

I am not so sure about just having to be on the contract and not closed on the home. I just purchased a home recently and my understanding was that you have to be closed on the home by the deadline. I would look into that. Also, I have heard about the rebate being extended. Perhaps your real estate agent is trying to "gently nudge" you into making a quicker purchase?

[CornDog]

There will be another "x" for clunker program by then! They are already talking second stimulus!

I say look and if you find a house you really want for the money you cannpay, the pull the trigger. I bought the 8k was a tax credit which is nowhere close to 8k cash. In the grand scheme a true value on a house with intrest rates being great is better than any rebate you will ever get.

Keep in Mind very few people ever plan the market and then have everything fall in place like they want!

Also, the tax credit is just like getting money back. It's not a deduction from your AGI (adjusted gross income). It's a deduction from any tax liability you have. If you don't owe taxes at the end of the year, you'll get the $8K plus whatever refund you're owed.

[LukeDuke]

from the IRS website:

"Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return."

[bowhunter08]

I think you should wait on buying a house till you can pay cash for it. Just my 2cents.
The next house I buy I pray is with cash.

[JTeLarkin08]

I think you should wait on buying a house till you can pay cash for it. Just my 2cents.
The next house I buy I pray is with cash.

Well i have been working a total of 5 months so that will be a long time! and im not going to be stupid and rent, thats just a waste of money!!

[JTeLarkin08]

from the IRS website:

"Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return."

ya thats what my buddy said. You just have to be in a contract and then you have a certain amount of time after that to actually close on it.

[savagehunter83]

just a few things l read on this from irs it is not an 8000 flat credit it is an up to 8000 credit and there are several things that can change do your home work if you are depinding on it. My wife and I where planning on using it to get into a house but decided if you could not do it on our own then we did not want to depend on the credit. Send me a pm if you want and I will be happy to go into depth of what a learned all about this.
Matt

[JTeLarkin08]

just a few things l read on this from irs it is not an 8000 flat credit it is an up to 8000 credit and there are several things that can change do your home work if you are depinding on it. My wife and I where planning on using it to get into a house but decided if you could not do it on our own then we did not want to depend on the credit. Send me a pm if you want and I will be happy to go into depth of what a learned all about this.
Matt

No im def not depending on it but i think it would be wise to take advantage of it

[CornDog]

just a few things l read on this from irs it is not an 8000 flat credit it is an up to 8000 credit and there are several things that can change do your home work if you are depinding on it. My wife and I where planning on using it to get into a house but decided if you could not do it on our own then we did not want to depend on the credit. Send me a pm if you want and I will be happy to go into depth of what a learned all about this.
Matt

I know there are a few stipulations- one I know for sure is an income limitation. I think it's relatively high for someone who's only been working for 5 months so you're probably ok

[HUNTNETIME]

I think you should wait on buying a house till you can pay cash for it. Just my 2cents.
The next house I buy I pray is with cash.

I wish that were a reality for more people in this country, but it is not. That being said, I'd rather see a financially responsible and reasonably secure individual put their money towards something they will own than throw it away renting. Besides, I think banks are just a little bit tighter with the mortgage loans these days than they used to be. I'm sure you don't have to be squeaky clean to get a loan nowadays, but I'm sure you can't be a carpetbagger. I say go for it.

[Landrover]

Well i have been working a total of 5 months so that will be a long time! and im not going to be stupid and rent, thats just a waste of money!!

Seems you have your mind made up on this entire subject! I disagree that renting is a waste if you have other outstanding debts that could be cleared up in the mentioned timeframe. (school loans, consumer credit, etc.) No debt and BIG downpayments are still the best bet when purchasing any type of home. $8,000 from the government is about the last thing I would concern myself with when making a 15-30 year committment.

No im def not depending on it but i think it would be wise to take advantage of it

Could be wise based on your total situation. Could be very unwise if you rush into something just to get the help!