Homebuyers

Buying a House in the Winter

Though it may not be a traditional time to purchase a property, buying a home in winter may be the right opportunity for you and your family. There can be great deals for the persistent and savvy buyer during the winter homebuying season.

Whether you're a first-time homebuyer or you're looking to buy a second property, buying a home during the winter months may have its advantages. Here are some key points to think about when buying a home in the winter.

Less Competition

Because many consumers are wrapped up in holiday shopping and travel, you might not have as much competition during the holidays as you would in other months. With less competition, the better the chance you will have at making your offer accepted on your dream home. It could also mean you're less likely to participate in a bidding war with other potential buyers. Getting caught in a bidding war can cause potential buyers to make a higher offer on the home that you're interested in. The lesser the competition there is, the better the price you might get.

Negotiation

Negotiation is all about getting the best deal possible. In a market where houses receive a handful of offers and sell quickly, potential buyers don't typically have any wiggle room to negotiate a deal. However, when there's not much competition, you may be able to use your negotiation skills and get a great deal. This can include making an offer below the selling price, asking for certain home repairs to be made before moving in, or even requesting that the seller pay for some of the closing costs.

Mortgage

The loan process may be quicker during this time, so you can get into your dream home faster, since there may be fewer applications! Some lenders may even have a 14-day business day guarantee, so you can move into your home before the New Year! Also, having a lower interest rate could save you money as you work on paying off your new home. Make sure you check with your New American Funding Loan Officer to find out what the current interest rate is for the loan that you're interested in.

Getting Tax Breaks Before Year-End

Buying a home during winter may also give you some tax benefits before the year is over. (Please consult with your tax advisor). Homebuyers may be able to use some of their home purchase costs for tax write-offs. The following may be tax-deductible:

• Mortgage interest
• Private Mortgage Insurance (PMI) premiums
• Real Estate taxes

Additional Tips for Buying in the Winter

Stick to your budget

To make sure your winter home purchase meets your budget, you can calculate how much home you can afford before you make a decision.

Negotiate with confidence

Remember, winter can be a good time to negotiate. Since there is less competition, sellers may be willing to work with you. If the home inspection brings up some issues, consider asking the seller to make the repairs or lower the asking price of the home.

So, are you ready to buy a home? With all these advantages, buying a home during the upcoming winter months could be a great opportunity for you and your family. If you're committed to getting your dream home sooner rather than later and are willing to potentially get a better deal, consider the possibility of purchasing during the winter.

To get started on the loan process and to see if you qualify, contact a New American Funding Loan Officer today!