Buying a house for the first time?  The Federal Homebuyer Tax Credit runs out soon, and if you're hoping to qualify you should be done house hunting by now.  Lenders are busy with backed up paperwork and say they're finding one group holding back. Young people are hesitating believing its more important to get the right house as opposed to getting the tax credit.

Jane Cagwin, with Common Fund Mortgage Group. said some might be playing it safe instead of cashing in on the first time tax credit, which could put up to $8,000 back in your pocket for buying a new home.  Officials are hinting at extending the deadline, but lenders say don't wait.

And, you are gambling if you wait because interest rates are so low.  Right now, fixed rate is at 5% so, you could potentially qualify for more of a home.  If you wait, those interest rates could spike.

So if you feel your best bet is to buy, the first thing you should do is contact a lender.

You will need current paystubs, w-2s and income tax returns, as well as bank statements,

Cagwin said credit is the most common hang-up. If you have had credit problems in the past, your score might not be where you need it to be today to get a mortgage.

In addition to the Federal Homebuyer Tax Credit, New York State is also offering a rebate if you could qualify. This rebate could be up to $1500.00.