April 30th is the final date homebuyers have to be under contract on a new home so they can use the first-time homebuyer tax credit. Last year the first-time homebuyer credit was extended and now offers first-time homebuyers up to $8,000 if they qualify.
Many people have been looking to buy a home since mortgage rates have been low, housing prices have been affordable, and the first-time homebuyer tax credit was offering an $8,000 incentive to do so. However, as April 30th nears and mortgage rates begin to creep up homebuyers may be scrambling.
Also, those looking to use the first-time homebuyer tax credit are going to have to mail in their tax form since additional documentation is required, so it may take a bit longer for homebuyers to see any money from their tax return.
However, homebuyers that are looking to take advantage of the tax credit shouldn’t take buying a home lightly. Making sure you are on financial ground that is stable enough to afford you the means to pay for a home needs to take priority over getting a tax credit.