What Good is an Extension without a Loan Approval?
The deadline for the homebuyers "tax credit" due to expire June 30 has been extended to September 30. Not only is the extension great news, but interest rates have fallen over .375-.50% since the end of April according to Freddie Mac.
This could effectively reduce a buyer's monthly payment over $600-800 a year on a $200,000 30-year fixed rate loan!
Unfortunately, for the estimated 180,000 homebuyers this extension impacts, their closing was held up by the lender. Some of the reasons may well be legitimate and some unfortunately may not be.
If you know someone who has had difficulty getting their loan closed, call me. Just because someone has been unable to get a loan closed so far does not mean that it may not be able to close. What's more, we closed a lot of loans in May and June for people who submitted their application after the Tax Credit's April 30th contract deadline.
I'll review anyone's situation and offer my opinion on what their options might be - no cost or obligation.
NOTE: the Homebuyer's Tax Credit extension only applies to people who were under contract by the initial April 30th deadline. Homebuyers who entered into contracts after April 30th remain ineligible for the tax credit.
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