The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where…

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Apparently, the government hasn’t been as quick about getting the home buyer tax credit refunds out as most of us have been expecting, so I’m posting this here to make everyone aware.

When you file for your refunds, hoping for a quick turnaround is OK, but don’t make any major plans with that money until you actually have it in hand. Good luck!

I told you the other day that the Tax Credit extension and modification had passed Congress and was headed to President Obama’s desk for signature. Now I’m excited to post that IT’S OFFICIAL… Obama has signed the bill into law and it’s time to get moving if you plan to take advantage! Call or email me immediately if you need details.

It’s a much-anticipated move that, for some reason, has taken a lot longer than most expected it would, but it’s being reported that the Senate has approved an extension (and modification) of the Home Buyer Tax Credit, which many believe will continue to drive the housing market upward, aiding in an overall economic recovery. Now, it’s up to President Obama to sign it into law.

The $8,000 maximum first-timer credit will continue and will now available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.  A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

The modification most likely to make an impact, in my opinion, is that a credit will now be offered to move-up buyers as well; not just the first-time buyers. Expanding the income limits will also open up the opportunities to a broader group of home buyers.

Thanks to the first-time home buyer tax credit, first-timers everywhere are clamoring to get their closing date set before the November 30th deadline. As a first-time home buyer, the buying process was a big enough stressor for me, but actually filing for the credit can seem almost as confusing as understanding all those closing documents. Have no fear, It’s actually a pretty simple process and should only require about an hour of your time. You can choose to file for the tax credit on your 2009 taxes, or you can amend your 2008 taxes and get your refund a little faster, here’s how:

First, fill out form 5405.

Don’t let all the tax jargon and instructions fool you, read the instructions carefully. There’s not much clarity on what to send in with the 5405 Form, so I’ll break it down for you.

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Several of our buyer clients who’ve purchased a home the past few months qualify for the Home Buyer Tax Credit, so it just seems natural to make the 5405 form readily available for you all.

Please be sure you consult your tax adviser if you’re not completely sure about your qualifications or how to file for this credit.

Yes, it’s true… the clock is ticking for first-time home buyers who want to take advantage of the federal home buyer tax credit, but buyers aren’t the only ones who need to kick it into high gear!

If you’re thinking about selling your home, NOW is the time to get it on the market with an outstanding Realtor who understands how to market, market, market your home; here’s why… those home buyers who’re feeling the pressure of finding a home and getting it closed before November 30th are getting tunnel vision.

A month ago, when a buyer called on one of our listings, they asked questions like, “how many bedrooms, what’s the price, how old is the AC unit?” Now they’re asking one question before they ever get to those other questions; “can this house close by November 30th?” If the answer’s “yes,” they then go on to ask more, but if the answer’s “no,” they’re moving on. NEXT!

It’s very likely that we’ll see a dramatic drop in activity after the expiration of the federal home buyer tax credit, so your chances of selling are FAR better today than they will be 60 days from now.

Home Builders, Realtors and Bankers continue to urge Congress to extend the home buyer tax credit, and from what I see day-to-day, there’s no shortage of would-be buyers who’d like to see it happen, but will it?

Isakson’s legislation would extend the program through the end of 2010, almost double the credit to $15,000 and remove restrictions that prohibit individuals who already own homes or earn $75,000 — $150,000 for couples — from getting the tax break.

While I see where our economy would benefit from such legislation, I can also see an immediate pitfall to the above proposal. What happens to all those buyers who already bought under the current plan and only got an $8K credit? Will they be allowed to file for an additional $7K credit, or will they be locked out of the party, like the buyers who took advantage of the first program, which was only $7,500 and had to be repaid?

Furthermore, where’s the money for this program going to come from?

The Party’s Almost Over! I’ve been telling would-be home buyers for several weeks that if they want to take advantage of the home buyer tax credit, NOW is the time to pull the trigger, or they’re in danger of missing the November 30th closing deadline.

As a result of this looming deadline, we’re seeing a spike the number of multiple-offer bidding wars in the Edmond/OKC market. Realtor Magazine just reported similar situations in many other areas of the country, for the same reason.

Word of advice, quit trying to time your interest rate and get locked in on a house now. It’d be silly to miss out on an $8K tax credit while trying to time a simple 1/8% reduction in interest rate.

This question gets the award for the most asked question of August 2009. I’d assume it’s because the clock is ticking on those who haven’t found a house yet and they’re worried that they’re going to miss out.

Well, I can’t tell you if the tax credit will get extended or not, but what I can tell you is that as the program stands today, you better find a house and get under contract with the next 40-45 days or you’re gambling with $8,000!