$6,500 Home Tax Credit Sound Good? Not so fast…

How great does a $6,500 Home Tax Credit Sound?

Great enough to go out and buy a new house?  Not so fast…

Like pretty much everything in life there are a few catches to the tax credit. And not everyone is going to qualify.

In order to be sure you qualify to take advantage of the credit bankrate.com has a 4 question check list.  Before you decide make sure you can answer yes to these 4 questions on $6,500 home tax credit.

  • Are you already in the market?

“It’s a benefit if you need or want to move,” was a statement made by Dorcas Helfant-Browning, a former president of the NAR (National Association of Realtors).

  • Do local market conditions look favorable?

Helfant-Browning said, “Anybody contemplating doing this must feel strongly that the homes in their area have bottomed or are very close to bottoming,”

  • Can you sell your home in time?

Check on the average length of time a home is on the market in your area. This credit is only good until April 2009. If your average time on the market is 90-120 days from today you should be OK.

  • Can you close the expense gap?

“If you are upgrading, you need to make sure you have enough equity and available cash to cover the down payment.”

Remember that sometimes you are already in the best situation for your needs. Do not consider moving or purchasing a home just because this credit is being offered. Be sure to take into account all aspects of your situation before moving forward.

And remember it is always a great idea to meet with a Real Estate Professional who can lay out all your options for you.

If you are ready to move forward you can use our mortgage calculator or check out our mortgage rates to help you.

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