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I was recently interviewed by John Wordock of MarketWatch Radio Network regarding the first time homebuyer tax credit.  As I mention in the interview, about 90% of my recent business had been as a result of the credit, so I am definitely in favor of an extension.  At this point, there is no firm word on an extension, so buyers can't plan on it.  Do I tell buyers to snap up any house to take advantage of the credit?   No Way!  Having the $8,000 is a great gift but the house will be with you for years to come! If buyer have house in mind, this is the time to act.

Here's the full interview, with the high points below.

http://www.marketwatch.com/podcast/Recession%20and%20Recovery

John:  What advice do you have for first time homebuyer who want to get in on the tax credit?

Rachel:  I'm so glad you asked John... this is such an important topic.

My advice would be that IF a buyer is on the fence with their final home choice, they REALLY need to get their offer in this week. Most individuals are blissfully uninformed when it comes to understanding how long it takes to close a loan in today's market - you know what they think? They can go to closing a week after putting in a bid! It's just not going to happen, trust me!

This is especially true for those who are hoping to do a low downpayment of 3.5% and go the FHA route. With FHA or conventional even, it is quite EASILY a 30-45 day process -- minimum! I foresee November will one of the busiest months in recent national history, lenders & settlement attorneys across the nation are going to be swamped and you can't rely on your lender to work wonders.

Buyers need to understand that if it is their wish to take advantage of this awesome $8000 gift from the federal government, they SHOULD NOT rely on what (at this point) is a very rocky extension from those on Capitol Hill or put themselves in a bind by not allowing reasonable time to close.

In my recent experiences, underwriters are more scrupulous and critical than ever - EVEN for individuals with the best credit scores and income. There's no need to add another layer of complexity by waiting until the last minute. Believe me, buying your first home is stressful enough. If you want to close mid-November and give yourself some breathing room for unexpected surprises (which always happen), you need to be under contract today....no, actually let me re-phrase that, it should have been YESTERDAY! I'll tell you what I tell my clients, the old saying holds true, "To be forewarned is to be forearmed!" Long story short, if you want the $8000 credit, get under contract!