Want a raise? How to get a 16% increase in pay in 2010

“You don’t know what you have until it’s gone.” If you fit the category, you have a special opportunity. But, you have to act quickly! There are only a few more months to take advantage of the FREE $8,000 tax credit incentive provided through the Federal Government. This credit is specifically designed to motivate the 1st time home buyer. This is a credit, not a deduction. A credit is dollar for dollar where a deduction is percentage or an amount that reduces your overall adjusted gross income. The latest U.S. average household income is $50,233 and that number is from 2007. If I were to guess, it’s probably dropped since then. That means that an $8,000 check in your hands from the IRS is a 16% raise if you are “average” in the U.S. for 2010. Quite honestly, it’s a bigger raise than that for next year because the income is based on before tax income, not after tax. These 8,000 smackers are tax free.
Most 1st timers are looking for homes up to $200,000. With foreclosure home prices stabilized, if not on the increase in this price range, it is extremely important to be approved and ready to make an offer to meet the time line on this FREE money. I am now hearing stories from my realtor partners and from pre-approved clients that they are putting in 5-10 offers before being successful on an accepted contract.
What does this mean for you? It takes TIME. With the clock already ticking on the tax credit (November 30th it will expire) you must be prepared to be under contract by the end of October. Just to be safe, you should aim to be under contract by October 15th. That may seem like a lot of time but once you begin the home search and fight everyone else out there trying to beat the clock you will see that time is of the essence.
Luckily for my team, as a mortgage bank, we underwrite and fund our own loans so our time to close on a transaction can be as quick as 10 days. But, for the typical mortgage broker in today’s lending arena, about 45 days is what they will really need in order to be successful and make everyone happy by November 30th. If you find yourself in a position where you FINALLY are able to get under contract on a home and you are near the end of October or into the first week of November, don’t panic. While the big banks and the mortgage brokers will be hard-pressed to make that happen there will be mortgage banks available such as my own that will be able to service your mortgage needs.
Q: Who could use the $8,000? A: Everyone! I have yet to run into someone who has told me they aren’t interested in free money. Q: Will it be extended? A: The honest answer is maybe. Who knows? But if you don’t want to have to refer back to the quote that started this post, I suggest you get moving or get this into the hands of the person you know needs to get moving.
If you have any questions or concerns about this or other related topics, please contact me at jwilliams@mountainridgemortgage.com