Simone Spotlight | Staying on Track when Buying a Home during the Holiday Season
Monday Blog | november 6th
Here are 3 tips for buying during the Christmas, Hanukkah, and holiday season:
Tip 1. Don’t incur new debts!
When you apply for a mortgage to buy a home, your credit and any existing debt you have will be examined and considered by a loan underwriter. While you don’t have to have zero debt to get a mortgage, you should be paying your debt down consistently to be in the best financial standing possible for the sake of your loan.
It may be tempting to pay for seasonal purchases with a credit card, but ultimately it is not advisable as this will show up as debt. While you are in the process of buying a home, avoid making other large purchases (like buying a car or new furniture), use cash or debit cards as often as possible, and avoid touching your savings account; that’s good advice when buying a home, no matter the season!
Tip 2. What is your bottom line?
Knowing how much you can afford to spend on your home is important any time of year, not just during the holidays. Knowing how much you can spend on a new home before you begin to visit potential properties is key.
Many times buyers are told how much a bank will loan them. This number is the maximum you can spend, but a buyer doesn’t have to spend up to that number. You want to make sure that you know what is the most you want to pay for a home and not exceed that number even if the bank is willing to lend you a higher amount.
Tip 3. Stick to your budget!
Once you have established how much you can spend, you need to stick to that number. Sticking to your budget will make you feel better about moving forward with your home purchase. Knowing that the home you are buying is one that you can afford will prevent unnecessary stress.
Advantages to buying at this time of year:
The holiday season is less competitive. You have motivated sellers and faster closings during the holidays!
Because winter is usually a slower season, it’s a great time to be a buyer. Most home purchases occur during the spring and summer months, but homes go on the market year-round; by shopping during the winter, you’re more likely to find a home that you like quickly and less likely to face stiff competition when you submit your offer.
Additionally, sellers and their agents are often more motivated before the holidays as they want to close the sale before the end of the year, which means they may accept lower-priced offers.
Also, since fewer people move before the holidays, there’s usually not a rush for moving trucks; just a nice little bonus to moving this time of year!
Although both the holidays and the home-buying process occasionally come with their share of stresses, don’t let that dampen your holiday spirit.
Take every chance possible to slow down and celebrate this very special time of year; before you know it, you’ll be in your new home!