Routing # 256078446
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Pros and Cons of Buying a Home in the Summer
What you'll learn: Factors that may influence home buying decisions during the summer season.
EXPECTED READ TIME: 4 MINUTES
January 28, 2022
For many potential home buyers, the summer is a perfect opportunity to purchase a home. The kids are out of school, there may be some downtime at the office, and the summer weather offers a respite from weather delays. Find out the pros and cons of buying a home in the summer and learn what to expect from the process.
Why Buy a Home in the Summer?
While many people think of the spring market when they are considering a home purchase, a summertime purchase may actually make more sense. You may be able to pick up some bargains from homeowners who waited too long and missed the height of the spring buyer season. In addition, if you normally take a vacation in the summer, you may be able to use that time to close on and move into your new home.
What are Your Goals for Your Home Purchase?
Everyone purchases a home for a different reason, some personal and some more practical in nature. Some possible goals may be the following:
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Making a smart financial investment
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Preparing for your future home needs
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Providing your family with more housing stability
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Experiencing the intangible, emotional benefits of owning your own space
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Finding more room for a growing family or downsizing for retirement
Understanding your goals will be key to the strategy you develop for your home purchase. When you understand your own motivations, you can make more logical decisions throughout your home search process.
Plan ahead for the Home Financing Process
One of the first things you will need to do as you prepare to purchase your home is to talk with a lender about your home financing options. The decisions you make during this process will have a major impact on both your home search and the affordability of your purchase in the years to come.
Here are some of the things you need to discuss:
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How much do you have to put down on your purchase? Do not forget to include the required reserves, earnest money deposit (EMD) and closing costs as well.
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Will you be using your own savings for your down payment or are you planning to include money that has been gifted to you from friends or family members?
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What is your current income and how will you need to document it?
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What is your current debt and is it possible to reduce it by the time you apply for your mortgage?
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What is your overall budget for a home purchase?
Advantages of Buying a Home in the Summer
Home inventory may be at its height in the summer while demand is often lower. This is because many spring buyers have either gone under contract or closed on their purchases while late spring sellers may still be waiting for a deal. In hot-weather markets and some resort areas, summer may represent the off-season so you may be able to find plenty of inventory without a great deal of competition for the best listings.
In addition, you will be able to see your potential home at its best in the summer. You will be better able to evaluate outdoor spaces this time of year than you can during spring rains, winter snows, or under a layer of leaves in the fall.
Disadvantages of Buying a Home in the Summer
While a summer home purchase may make sense for many buyers, they may experience some frustrations as well. For buyers with children who are out of school, there may be a need to find childcare when attending home showings or they may have to tour homes with the children. This can be distracting and make it more difficult to discuss the home and a suitable negotiation strategy.
In addition, for parents who are trying to get settled before school starts, there may be added pressure to find the right home and close on it quickly. This can lead to poor decision-making and limited options, not to mention a rushed escrow and moving process.
Always Expect the Unexpected
While you will naturally want to plan ahead for buying a home in the summer, it is important to remember that every home purchase process is different. It is vital to stay open-minded and flexible throughout the process and to draw on the expertise of your trusted lender and real estate professional. The more you can communicate your needs ahead of time and anticipate the unexpected, the more likely you are to feel satisfied by the outcome.
Buying a home in the summer offers its own array of advantages. Get started now and you could be spending the 4th of July grilling out on your new patio.
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Pros and Cons of Buying a Home in the Fall
If you are thinking ahead to an upcoming home purchase, the fall season may offer unique opportunities and advantages.
Pros and Cons of Buying a Home in the Spring
If you are thinking ahead to buying a home, a springtime purchase may offer unique opportunities and advantages.
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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