$8,000 Federal Tax Credit Expires December 1st!

December may seem like a long way away from today but as some real estate transactions can go, now should be the time to start thinking about utilizing Uncle Sam’s first-time home buyer tax credit.   Stop renting, real estate has never been this affordable.  A Chicago home buyer has every advantage going for them with low mortgage rates, over supply of homes on the market and the government giving away money to help pay for things like closing costs or close the gap on the down payment. 

$8,000 might not make much of a dent in a 30 year mortgage but it could make the difference in your short term cash flow after closing.  Don’t forget that closing costs can be more than $5,000 with transfer taxes, attorney fees, stamps and title insurance fees. 

July and August are notoriously slow real estate months but before you know it, fall will be here and December 1st  becomes closer than ever.  These next 2 months gives the first-time buyer a great time to do your research, soul searching and time to save a little extra scratch. 

Be sure to do your homework and if you get serious about buying, think long and hard about where you want to settle in.  Most economists expect real estate prices to slowing climb out of the current lows and it may take 5 years to see decent appreciation in your home’s value.   While one’s home should always be considered a place to live over it being an investment, make sure you are comfortable with the big picture and staying in that location awhile.