Buyers Need To Be Prudent About Ticking Tax Credit
As a Realtor I'd love it if the federal government would extend the First Time Home Buyer Tax Credit again. I wouldn't be honest if I reported otherwise. Having said this, I'm encouraging my buyers to be very cautious as they make their purchasing decisions.
Since it doesn't look like the tax credit will be extended, I'm witnessing first time home buyers in a desperate frenzy to put a contract on almost anything they can find. After all, most of these buyers are young and have never received an $8,000 check in their lives.
I'm simply writing this post to remind my friends that signing up for a mortgage just to get a check may not be the most prudent action. To be sure, if the right home has been located and there's a good feeling, then go for it. However, if it doesn't 'feel' right and you're only throwing a contract on something for an $8,000 check, then you may want to step back a few paces and take a look at the bigger picture.
Good for my friends and clients that have taken advantage of the tax credit. Good for the those too, that recognize receiving an $8,000 check or credit may not trump the 30 year commitment that comes with it, if you can't comfortably make the monthly obligation.
Hopefully South Carolina will follow the lead of other states and introduce and/or expand a state home buyer credit. Presently we have the Palmetto Heroes Program, which is available to qualifying teachers and emergency first responders.
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