appraisalbackyardbidBidding WarBuyersbuyingclosing costscommunitycurb appealHomeownersmortgageneighborhoodreal estateSpringsummertrendsUncategorized August 16, 2017

Is Summer or Winter the Best Season to Buy a Home?

You hear it a lot – there are best and worst times to make any sort of purchase. Whether it’s a television, a car, or a home, statistics are available that may influence your decision on when would be the best time to make a purchase.

Numerical data isn’t the only thing you should be taking into consideration, though. Each season has something different to offer in terms of making the home buying process easier or more challenging. Let’s take a look at the pros and cons of buying during the summer or winter.

What to Think About When Buying a Home During the Summer


Did you know there are more homes on the market during summer? According to the National Association of Realtors, inventory in the U.S. is actually 15% greater in the warmer months than in the colder months.

If you have a lot of items on your home wish list, you might be better off searching during summer as you’ll have more homes from which to choose. The only disadvantage (depending on the climate where you live) is that summer results in more competition, as a greater amount of people are likely to visit open houses in nicer weather.

It probably goes without saying, but moving during summer is a bit more pleasant than moving during winter. For many, sweating beats freezing while trying to pack and unpack a moving truck. You can always cool yourself down, but it’s usually harder to warm up. It also tends to be safer if you reside in or are moving to an area that gets snow or ice.

If you have school-aged children, moving during their summer vacation offers more flexibility than trying to move during the winter holidays or spring break.

Lastly, one nice thing about summer is the lack of snow. That can be a huge obstacle when trying to look at the exterior of a home. You might miss the fact that a few shingles (or the entire roof) need to be replaced when there’s a pile of snow on top of it. The same goes for cracks in the driveway, and curb appeal in general.

What to Think About When Buying a Home During the Winter

There’s less competition in the winter as most people are busy with the holidays, their new year’s resolutions, or getting back into the swing of things at work. At this time of the year, buying a home isn’t typically at the forefront of most people’s minds.

What does that mean for you? No bidding wars, and more room to negotiate if a seller is feeling a bit desperate.

They might be if the reason why they’re moving is a pressing one. Combined with having to work around their real estate agent’s holiday schedule, having less showings, and subsequently, less interested buyers, sellers might be willing to give you a better deal or include more bonuses in the offer.

Again, depending on where you live, the weather during winter can be brutal. You’ll be able to easily identify drafts from windows in a house, and you’ll notice how effective the heating system is.

While snow can work against you, it can also work for you as you’ll be able to see how well the roof and driveway handle several inches of accumulation. Are there noticeable dips in the driveway? Have ice puddles formed on the property? These fairly major repairs can give you an advantage during negotiations.

Considerations for Both Seasons
There are a few factors to be concerned with during both seasons – namely, your real estate agent’s availability, and your neighbors.

Obviously, real estate agents may take time off during the holidays in the winter, but if they have children, they may also be likely to take off during the summer as well. Before you work with an agent, ask them about their availability over the next few months. You want to ensure that their planned absence won’t negatively affect your intentions to buy.

On the other hand, an agent looking to work through the winter holidays may be more motivated to help you, given the number of prospective buyers is lower.

Additionally, when you buy a new home, you’ll want to be surrounded by good neighbors, right? Summertime is great for seeing which neighbors excel at lawn maintenance and which ones let their grass grow for weeks on end. If you’re someone that cares a lot about a home’s upkeep, this might concern you.

At the same time, you’ll be able to see if neighbors work together to get rid of snow during the winter, or if houses on the block are nicely (or obnoxiously) lit up with holiday decorations.

Which Season is Better for Buying a Home?
As you may conclude, there’s no right or wrong answer. There are benefits and impediments to searching for a home in any season. You shouldn’t let weather or the trending numerical data hold you back. When you’re ready to buy, you’ll know it.

Source: Coldwell Banker Blue Matter

credit scorefinancingfirst time buyersmortgagereal estateUncategorized May 7, 2017

Pop Quiz: How Well Versed Are You in Home Mortgage Loans?

If you are in the market for a new home, then you’d better read up!  No matter how much you know regarding mortgages, its never too late to learn.

A lot of Americans are caught up in a mortgage nightmare simply because they didn’t dive into the process with some preparation. With a little studying and education, getting a home mortgage can become a far less stressful endeavor.

Here are a few questions that can help you go into the home mortgage process with more knowledge and confidence. Although this quiz doesn’t cover everything you should know,  it’s certainly a good start:

Question 1: What is the difference between pre-qualification and pre-approval?

Answer: Pre-qualification is the first step in the mortgage process that involves supplying a bank or lender your financial information in order to find out how much you can borrow on a loan. Pre-approval is when you and your mortgage banker review your credit report to determine if you’re worthy of qualifying for a particular loan amount.

Question 2: What are the two big cash expenditures that require having money on hand to buy a home?

Down payment and closing costs.

Question 3: Generally, a monthly mortgage payment is made up of four different components commonly referred to as “PITI.” What are they?

Answer: Principal, Interest, Taxes, and Insurance.

Question 4: Why is it recommended to make one extra payment a year for people on 30-year fixed mortgages?

Answer: Since extra payments cut down the principle of your loan (and not interest), giving one additional payment a year can shorten your loan term by a decade.

Question 5: What is the downside to a subprime mortgage?

Answer: Although subprime mortgages come with lower introductory interest rates, they increase significantly after a number of years.

Question 6: What does LTV stand for and how do you determine it?

LTV stands for loan to value ratio. To find out an LTV, divide the loan amount by the appraised value of the house. So if your home is worth $200,000 and the loan amount is $100,000, then the LTV is 50%.

Question 7: There are three term lengths you can get for a fixed-rate mortgage. What are they?

Answer: 15 year, 20 year, and 30-year terms are your options for a fixed-rate mortgage.

Question 8: Of the mortgage rates mentioned in the last question, which one do most people find the easiest to qualify for?

30-year mortgages since a longer term means lower, more affordable payments. The fact that longer terms also mean bigger tax deductions also plays a role.

Question 9: Is it a good idea to get an ARM (adjustable-rate mortgage) if you plan on owning a home for a long time?

Answer: No. Since the interest rate on ARMs change along with market rates, they are unpredictable. An ARM is only recommended if you’re staying in a home for a short period of time.

Question 10: Lenders will look at your job history when considering offering you a loan. A red flag for them is if you haven’t been at your current job for at least how many years?

Lenders like to see that you’ve kept the same employment for at least two years. This also applies to people who are self-employed and part-time employees.

Question 11: What is it called when you owe more than your house is worth?

Answer: Owing more than your house is worth is called being “upside-down” on your mortgage.

Question 12: Is it OK to open a new credit account during the mortgage process in order to help pay for moving expenses, new furniture, etc?

Answer: No. Since everything must be documented with payment amounts and account statements, doing so can affect your debt-to-income ratio.

Source: DreamCasa.org