Some first-time buyers risk losing an $8,000 tax credit if the sale and purchase of a  home is not completed by June 30, 2010.

With the June 30 deadline looming for first-time homebuyer tax credits, many homeowners struggle to close the deal, while many buyers drag their feet at the risk of losing it all.

Earlier this year, after signing a binding sales contract for a home $800,000 or less, first-time buyers became qualified to receive a tax credit up to $8,000 on the purchase of a new home. Rules may vary and tax credits for service members may still be available.

However, signing the binding sales contract was only one half of the equation. The agreement requires that the buyer complete the sale and purchase of the home before July 1, June 30, the last eligible day, in order for them to receive the tax credit, which can be as much as $8,000.

Simply put, signing the binding sales contract made buyers eligible to receive the tax credit but only after completing the sale and purchase of the home, will the buyer be able to receive the tax credit.

Some first-time buyers risk a potential loss of $8,000 in income that was handed to them tax-free by the government. Sound like a deal that is too good to be true. Well, not only is this deal better than good, which means great. It’s also true, which means real.

Although Congress is working on passing another tax credit extension through September 30, a buyer cannot count on the inevitability of the bills passage, the details involved, or the final timeframe it will include.

Risking the loss of a tax credit now on the promise of an extension later is a risky as placing all your life’s savings on red on a roulette table.

September 30 is a long way from June. Buyers dragging their feet now on sealing a deal later may not only risk losing their dream house but also the $8,000 credit that could be used as a down payment on their child’s college education.

If you’d like to know more about how you can take advantage of this tax credit our more on Travis lake waterfront property, fell free to visit us at http://www.dmtx.com.

Greece announced that the emergency loans it received will cover its obligations and help the country avoid defaulting on loans, helping to ease investor fears. For the week, this catapulted the Dow 279 points higher. If the stock markets continue this upbeat trend, we’ll see the demand for Treasuries start to wane, which will inevitably push interest rates higher. Although, with the way the global markets have been lately, that demand for U.S. Treasuries might not let up anytime soon.

It’s also looking highly unlikely the Fed will raise interest rates anytime soon, perhaps even until 2011. The uncertainty in the markets and the slow economic recovery will most likely keep mortgage rates low for a few more weeks.

These low interest rates combined with the high inventory of homes throughout the Austin area, provide the perfect opportunity for all home buyers to take advantage of this fantastic market.

If you’re considering buying a home before the deadline, here is what they say your schedule should look like:

- September 15-October 15 Up to four weeks for house hunting. Allow a couple of days for negotiations and counter offers.

- October 15 Under Contract. Home inspections can be done within a few days, but it can take two weeks for an appraisal. New mortgage disclosure rules can delay closings by several days if the long terms change. That includes an increase in downpayment if the appraisal is low.

-November 2-6, 9-13 Ideal weeks to schedule a closing.

- November 16-20, 23 & 24 Crunch time for last minute closings. There’s a finite supply of one-hour slots at title companies. Long Thanksgiving weekend: few, if any, closings are likely to be scheduled November 25-29.

- Monday, November 30 Last day to close.

If you’re interested in cashing in on the credit, start your search today by looking at some listings and calling your Realtor.

“…let’s assume a loan amount today of $100,000 with a 30-year fixed-rate residential loan at 5 percent. Nationwide at the time of this writing, the average 30-year rate was 4.85 percent per Freddie Mac. Fannie Mae forecasts an average rate in all of 2009 of 5.13 percent. So the 5 percent is a reasonable assumption.

So if rates go up just 1 percent to 6 percent per year, then prices must drop at least 10 percent for that same buyer to qualify for the same monthly payment. A 1.5 percent increase in rates to 6.5 percent requires a 15 percent price decline, and a 2 percent increase necessitates a 20 percent price decline to qualify. Note: This 1 percent interest rate change to a 10 percent price change is only true when interest rates are 5 percent as they are today.”

Interest rates vs. price changes

Admittedly, at the same loan-to-value ratio, as prices decline so does the down payment. Since, however, many buyers select the price range of homes they consider buying based on their monthly payment potential, rising rates may force future buyers into less expensive homes and hence properties they find less desirable.

So, if you are waiting to buy your first home or if you are waiting to make that second home investment – don’t wait much longer! Postponing that purchase is going to price you out of the market and you are going to have to settle for something less or just wait for the next recession. Don’t get burned. Thanks to Ted Jones for letting us reprint part of his blog which can be found here.

 April’s sales in ‘09 were down 18% from April ‘08. May ‘09 sales were down 19% from May ‘08. But June had a 4% decrease from ‘08, the smallest decrease since the 2% drop in  June ‘o8 from June ‘07.

Also in June, Pending Sales (sales set to close in July) were up 4%.

Reasons for the upturn include

• $8,000 tax credit (for homes closed on before December 1)
• Population increase – numbers of people moving from other cities or states
• People looking for lower risk investment opportunities (Real Estate is historically considered a strong investment choice)
• Builders have been building fewer new homes, affecting the balance of supply and demand, and putting more demand on resales.