Routing # 256078446
MORTGAGE KNOWLEDGE CENTER
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Pros and Cons of Buying a Home in the Fall
What you'll learn: Factors that may influence home buying decisions during the fall season.
EXPECTED READ TIME: 5 MINUTES
January 28, 2022
Some homebuyers may find themselves beginning their home search in time for a fall purchase. Maybe they are moving for a new job or simply because they want to get settled before the upcoming holiday season. Whatever the reason, there are a variety of pros and cons involved in buying a home in the fall. Find out more about the process and learn why a fall home purchase may be a great option for you.
Why buy a home in the fall?
Often, homebuyers who choose to purchase a home in the fall are reacting to life changes like a marriage, separation, or the birth of a child while others may be relocating for a job. In some cases, homebuyers may choose to purchase in the fall in order to avoid another winter spent in a cold climate or they may be empty nesters who are downsizing after their youngest child has left to attend college.
What are Your Goals for Your Home Purchase?
Whatever your reason for buying a home in the fall, you need to define your goals. What does a great outcome look like to you? Some possible goals may be the following:
- Saving money by buying outside of the most popular selling season
- Buying on a compressed timeline in order to get settled before the holidays
- Finding a home in a popular commuter corridor
- Creating added stability for changing family circumstances
Knowing yourself and your goals for the home purchase, then communicating that information to your lender and real estate professional, will help you to better define your ideal outcome and create a plan for the process.
Plan ahead for the home financing process
No matter what time of year you are buying, your first step is preparing for the home financing process. In order to do that, you need to talk with your trusted lender and take stock of your finances so that you can successfully navigate the application and underwriting processes.
Here are some of the things you will need to discuss:
- What is the budget range for your home purchase? Do you want to be at the top of your budget or do you need to reserve funds for additional expenses once you have completed your move?
- How much will you need to have in reserve for the home purchase, including the deposit, down payment, and closing costs?
- Are there homebuyer incentives or grants you should be aware of and for which you qualify?
- If you are relocating to another state, how much of your savings will you need to reserve for a long-distance move, which could be prohibitively expensive as compared to a local move?
- If you are relocating for a new job, what documents do you need to provide to verify your employment and income? How will a job change affect your chances of approval?
Advantages of buying a home in the fall
One of the biggest advantages of buying a home in the fall is that it is considered, in most areas, the off-season for real estate purchases. Homes that are for sale in the fall may be owned by more motivated sellers who may be more open to negotiations. In addition, you may have less competition for available homes since many buyers will have closed during the more active spring or summer markets.
Disadvantages of buying a home in the fall
While you may have less competition, you will also have less inventory available in most cases. That may mean that instead of picking and choosing among a large number of options in your target area, you may have a hard time finding a home that checks off all of the items on your wish list. If this is the case, you may want to consider other neighborhoods or you may want to decide whether to purchase a fixer-upper and then make the improvements you want after closing.
Always expect the unexpected
Whatever your goals for your home purchase, you can be sure that there will be some twists and turns along the way. It is important for you to communicate with your team—your lender and your real estate agent or broker—so that you can be prepared for any eventuality and meet challenges head-on.
Buying a home in the fall offers unique opportunities you will not find with a spring or summer purchase. Get started now and you could be spending long cozy nights in your new home before you know it.
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What are the Steps to Buying a Home? Part 1
If you are a first-time homebuyer, there is a lot to think about. PenFed Credit Union takes you through the steps of what you need to know before buying a home.
Home Buying Steps
Mortgage Products
Disclosures
1Conventional Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
2FHA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
3VA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.125 discount point, which equals 1.125 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $450,000; loan-to-value ratio of 95%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of $995.
4Jumbo Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 0.625 discount point, which equals 0.625 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, non-conforming, fixed-rate loan. Loan amount of $1,009,000; loan-to-value ratio of 70%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.
Routing #256078446
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