If you are considering purchasing a house for the first time you are probably aware of the first time homebuyers tax credit of $8,000.  One of the conditions of the tax credit is that you must close by November 30, 2009.  While many people are fighting to try to get the deadline for the tax credit extended there has been no update as to whether or not it will be extended past the current deadline.

If you are planning on taking advantage of this first time buyers tax credit now is time to start on the purchase process, if you have not started to do so already.

Many first time homebuyers may not be aware of the time period that it takes to purchase a home in New York or New Jersey.  Most homes take about 45 – 60 days from the time the contract of sale is signed to the time of the closing date.  This date can vary depending on if you are applying for a mortgage and if the seller is ready to move out right away and also can depend on various other factors such as if there are any title issues or not.

The first step you need to take is to find the right New York or New Jersey home for you and your family.  The next step that will happen once you have found a house you are interested in is you will be given a binder to sign.  The binder will be signed by you and the seller and will include information such as the sales price that was agreed on and what will be included in the sale of the home (washer, dryer, refrigarator, etc).   The binder will be sent over to the New York or New Jersey real estate attorney of your choice and the seller’s attorney will prepare the contract of sale and send it over to your real estate attorney.  Once your attorney has received the contract of sale they will contact you to come into the office to review the contract with you, make any proposed changes and sign the contract.  The contract will also include the amount of time you, the buyer, have to obtain a mortgage commitment.  Once you obtain you have received approval from the mortgage company and any and all issues with the title company are cleared to close to go to closing (In New York the closing date is an “on or about date” meaning that it is an estimated date of closing.  Usually closings must take place within 30 days of this date).

As you can see this process requires some time and effort on your part if you plan on obtaining a mortgage to purchase your new home which is why many real estate experts are advising that you get started on the purchasing process now if you want to close by November 30 of this year and reap the benefits of the $8,000 tax credit that will be given to first time homebuyers.

We at Decker, Decker, Dito & Internicola LLP, a Staten Island firm, have over 35 years of experience in the real estate field.  If you are looking for an experienced real estate attorney for your New York or New Jersey property purchase you can contact Steven Decker or Arthur Decker at 718.979.4300 to discuss the purchase of your home.

Also, we recommend that our clients read “5 Myths That Can Ruin the Purchase of Your Home” written by Steven T. Decker.  This book debunks many myths that you may have heard before about purchasing a home and will help you throughout your purchasing process.  To obtain your NO OBLIGATION NO COST copy of “5 Myths That Can Ruin the Purchase of Your Home” you can either place your order online or contact us at 718.979.4300.