Answer:

Well, it depends! If you are a first time home buyer, then you need to start by meeting with a lender...And Soon! There are less than 90 days left to find a home and be eligible for the tax credit. Once the lender gives you approval and helps you establish a budget and type of loan, then you need to contact your Realtor and start shopping. This is the fun part! You need to be under contract by April 30th and close by June 30th to be eligible. The amount of the tax-credit that you qualify for will depend both on your income and the price of the house. Once you close on the home, you can file for your refund - you do not need to wait!

 

If you are not a first time home buyer but would like to take advantage of the $6500 credit, you need to determine your eligibility (income, years lived in principle residence - at least 5) and then meet with a lender. If you have to sell your current home prior to purchasing a new one, you need to get it on the market ASAP (your current home would have to be sold and the new one under contract by April 30). If you can afford to purchase a new home without selling your current home, then start shopping - the clock is ticking! (Note that for tax credit eligibility, your current home doesn't need to be sold prior to purchasing the new one...The new one just needs to be your primary residence.)The time lines for this purchase are the same as those described above.

 

There are, of course, many minutia and varying scenarios in both of these. This is a general overview.

 

Cheers!