If done correctly, buying a house during the holidays can actually work in your favor! While the thought of making this happen during the holidays may seem impossible, it is probably easier than you think.
This isn’t the most popular time to purchase a new home, which makes the winter holiday season advantageous. Here are 3 tips for buying a house during the holidays.
Budget accordingly and fully understand your current expenses; also factor in the holidays (gifts, travel, etc). In other words, make responsible purchases, and please do not add new large debts. One of the biggest mistakes we see potential homebuyers make – no matter the time of year – is allowing something drastic to happen which affect their credit or situation.
Lenders can request a last-minute credit check before closing on a loan to ensure no new debt has been added meaning a car purchase or lease, an expensive gift purchase or huge debt placed on a credit card for a lavish holiday trip could show up. You are not in the clear until you close, so as a reminder, your credit score can affect your interest rate on a home and even your eligibility for the loan type and amount you are applying for.
The holidays do typically offer motivated sellers and faster closings during the holidays.
The holidays are usually a slower season for the real estate market as a whole so it’s a great time to be a buyer. By shopping during the winter, you are more likely to find a home with far less competition when you submit your offer. Most times, you will also find sellers and their agents more motivated before the holidays because they want to close the sale before the end of the year. This means they may accept lower-priced offers.
Factor in Holiday Hours and Availability
Real estate agents, rental van companies, movers, insurance agents, closing & title agents, and yes – even mortgage brokers are humans. They will want to spend some of the holidays with their families, just as you do. So, you’ll need to know their holiday hours well in advance. Not only could holiday closures affect your closing date, but also your moving date.
Happy Holidays from all of us a First Down Mortgage!