Summertime is the busiest time to sell houses, which means that lenders are busy, too. Even though the federal tax credit for first time home buyers doesn't expire until December 1, now is a good time to buy. The volume of loans being processed is only going to get bigger as other people try to close on homes before the deadline. If you wait to buy something until October or November, you could miss out.
If you are a first time home buyer
that qualifies and you want to take advantage of the federal tax credit, buy as soon as you can. Sometimes deals fall through and you're back to square one. Because the lenders are already busy, your purchase could be delayed. Problems with the lender or the seller could happen. You simply cannot take the risk.
Great news! In case you didn't know, the tax credit can be applied for immediately after closing on your home. That meanns you can ammend your 2008 tax returns using the 1040x form and the 5405 (tax credit) form. As soon as the IRS has this, you will likely get your money within a few weeks. It's just that quick.
What should you do? Get out there, start looking, buy your first house and reap the tax credit rewards. What's there to lose? Only $8000 if you delay!