Deadline dances: the $8000 credit

When Jenifer McKim wrote about bidding wars ignited by the coming tax credit deadline, she quoted my friend and colleague Pat Magnell. Pat and I are both on the Board of Directors of the Massachusetts Association of Buyer’s Agents. Jenifer wrote that Pat said this:

Pat Magnell, a real estate agent with Buyer’s Choice Realty in North Andover, said she is surprised by the number of people who are only now deciding to look for a home because of the federal incentive. Although the credit is attractive, Magnell said, it should not drive such an important purchase.

Yet, it seems like the $8000 is burning a hole in too many pockets.

Buyers need to have their accepted Offer to Purchase and Purchase and Sales Agreements well in advance of the November 30th deadline. If you find a property too late, you will not be able to get your mortgage approved and cleared to close before the deadline. So how late is too late? I am beginning to hear rumors that so-and-sos competition will not promise to close by the deadline. But, to date, no lenders have told me that it is already too late.