Sleigh Bells are ringing, children are listening, and in your eyes – could a new home be glistening? With the hustle and bustle of the holiday season, the last thing on your mind might be applying for a holiday home mortgage. Shorter days and chilly weather have most people preferring to stay put until spring arrives again. Just as shopping for gifts this time of year means big deals – so does shopping for a holiday home mortgage. Smart buyers take advantage of everything that the season has to offer to find competitive rates and motivated sellers to make their wildest home buying dreams a reality.
When Is The Best Time To Apply For A Holiday Home Mortgage?
Statistically, fewer home sales occur from late-October to mid-March. This is attributed to the general distaste for having to move when the weather is not optimal, and the fact that most people are busy with family, friends, and co-workers for holiday events. What many people do not realize is that those who are selling are motivated to get their property sold.
Due to the common knowledge that the holiday season is synonymous with the slow season for home sales, sellers who embark on unloading during this time are more likely to strike a deal with the right buyer. Those selling during this time are often fighting the odds because of financial reasons and aim to eliminate the asset before the New Year. Once you have found the right home, you can tackle the advantages and disadvantages of applying for a holiday home mortgage.
Advantages Of Applying For A Mortgage During The Holidays
Just as sellers are motivated to give you a deal, so are mortgage brokers. With business down and year-end goals in sight, lending offices can offer more competitive rates than during other times of the year. For many, this can be the difference in saving thousands of dollars on your mortgage. In hopes of driving up business, banks and brokers alike offer special interest options for year-end applicants, as well.
Another advantage is that buyers receive more one-on-one attention from brokers during the application process. Fewer clients mean more free time which means more dedication. Buying a new property is a detailed process, knowing that someone is willing to devote more time to you makes missing that ugly sweater office party worth it. This also affords the opportunity for you to negotiate the best details in your mortgage, based on what fits into your wants and needs. Choosing to purchase at the end of the year also gives you a boost at the start of the year with tax rebates for buying a home.
Lastly, the pain-staking process of applying for a mortgage and buying a home takes nearly half the time during the holiday season. Once again, as everyone from realtors to bankers to brokers is experiencing fewer customers, they can process applications and sign contracts faster.
Disadvantages Of Applying For A Mortgage During The Holiday Season
Although few, there are some disadvantages of applying for a mortgage during the holidays. Between late-October and the end of the year, there is a variety of federal holidays in which banks and mortgage offices are closed. This includes Columbus Day, Veteran’s Day, Thanksgiving, Christmas, and New Year’s Day. If you are working with a smaller company, it is possible that they may choose to be closed additional days to allow for long holiday weekends.
The various holidays can slow your application approval process. It can also be slowed down by your preferred broker or by you taking personal holiday time to enjoy friends and family. Simply put, if you want to purchase during the holiday season, be sure that you can allot the necessary time and effort required to see the process through – and choose a lender who can do the same.
Shopping for a new home and applying for a holiday home mortgage is most profitable during the last quarter of the year. If you don’t mind taking the time away from the holiday festivities, you can end up saving yourself on the cost of a new home plus your mortgage rate. Of course, the dedicated attention that you will receive from sellers and brokers alike is truly the biggest advantage. In the world where we often feel like a number, the holiday home mortgage process gives a chance to be one in a million.