Why New Years is the perfect time to buy a new DeLuca home!
If you’ve been thinking about buying a home, taking the plunge before year-end could save you money, give you extra negotiating power and potentially even increase your future take-home pay. Here are some of the reasons the fourth quarter is a great time to buy a home.
- Flexible schedules
There’s no need to wait until Saturday or Sunday to cram five house tours into your schedule. Rather than wasting precious weekends, take an end-of-the-year vacation day on a weekday to check out available homes – especially if your company has a “use it or lose it” policy. Chances are, agents and sales people have some time on their hands as well, and would appreciate staying busy throughout December.
The Federal Reserve continues its slow march toward higher interest rates, signaling that it remains on track to raise its benchmark interest in December for the first time this year. Expectations are that rates will be raised gradually, but even an extra half point can make a big difference in monthly payments as well as the lifetime cost of a loan.
- Lending lull
With everyone off celebrating the holidays, December is traditionally a lean month for mortgage brokers. Since there are fewer real estate transactions, loan officers may be motivated to offer special incentives and possibly waive or reduce origination fees. With so few loans in the pipeline, underwriting turnaround times will be quick.
- Less competition
Real estate sales tend to slow down during the fourth quarter for a variety of reasons – people get busy with the school year and the holidays, and inclement weather keeps people from venturing out to look at homes.
This market moderation, which can result in a lack of competing bids for choice properties, can put you in a strong negotiating position, especially if you have been preapproved by your lender.
- Tax savings
If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant, especially in the early years of your loan when you’re paying off a lot of interest.
- Down payment options
For many years, 20% has been considered the magic number for a mortgage down payment – anything less could end up costing you. Consider how adjusting your down payment will affect your interest rate; generally the less you put down, the higher your rate will be. But if getting into a home quickly is your priority, a low down payment can facilitate that goal.
- Available movers
Many moving companies are booked six weeks or more in advance during the busy summer months. In the fall and winter, it’s normally easier to secure the services of a moving company or rental equipment on shorter notice.
- You have time to move and unpack
Coordinating a move takes time and energy. The whole process can be a headache if you’re juggling a move and full-time work. If your employer offers time off around the holiday season, this might be the perfect time to buy a house because you’ll have time to move and unpack before heading back to work.