What’s the Best Time of Year to Get a Mortgage?

We know that sometimes there is the right time of year to buy everything- be it electronics, appliances, or even a house. With fluctuations in mortgage rates, many potential homebuyers are keen on knowing the best time to get a good deal on their mortgage.

However, there is no predictable or absolute pattern to determine the best mortgage rates. But, there are certainly a few different instances when you may consider applying for a mortgage.

Seasonality Matters!

Among various reasons such as market conditions and personal needs, every season in a whole year also affects factors like the purchase price or the number of houses up for sale(inventory). 

• Spring commences a healthy marketplace with buyers in order due to the appearances and appeal of the house, thus increasing the sales inventory. Therefore, if you plan on buying a home during spring, prepare to move faster with your mortgage application. 
• Applying in summer has its share of pros and cons. While there may be no good options by the end of summer, you might be lucky if you find a property in the market for a long period. This is because the buyer must have backed out, and you could close the deal if you sat tight until the very end of the season.
• Autumn and winter bring the opportunity for homebuyers to negotiate. Since there are fewer buyers in the market, the sellers lower the price to get a deal. Usually, people avoid moving during the winters and therefore offer the best selection of available houses for the potential buyers.

Other Factors Impact The Best Time Of The Year

Apart from seasonality, which may or may not affect the mortgage rates, the buyers also come across other factors that determine the best time of the year for you, irrespective of which season.

• Housing Market Conditions
• Personal Readiness

Home Market Conditions

You must know that housing market trends may vary by location; hence you may come across trends that are different from the overall market. 

Even if you find the houses’ prices low, you should consider knowing how mortgage interest rates impact your total expenditure over the life of the loan; since the evident savings from this great purchase can quickly be offset by a high-interest rate. 

Personal Readiness 

When it comes to personal readiness, you need to make sure that your Veda score (credit score) is good enough to get you the best home loan deal, regardless of seasons and home market conditions. The better score you have that determines your debt control before the purchase, the better mortgage home loan you get.

What’s the Best Time of Year to Get a Mortgage?

Regardless of any market conditions, economy, current interest rates, seasons, local demand and prices, the one thing you should be looking for is your affordability and willingness to buy a house. Even though the daily news of the rising cost of housing and the property discourages few potential buyers, many of them also successfully conquer the property market. 

While accurate market timing is essential to dominating the property market, you must be very cautious with your own capacity to buy houses. With more knowledge about the market, you seem to have better preparation during the course of action.

Buying a house and applying for a mortgage calls for a big commitment; therefore, timing your application to get a mortgage is essential. Though the best time to get a mortgage depends on your readiness, financial situation, among other factors, it is recommended to do your research and compare different home loan products before coming to a decision. 

But suppose you need your own mortgage advisor who can help you explore various loan options, a variety of products and assist you in securing a mortgage according to your needs and circumstances. In that case, APW Finance is the best choice for you. Contact us today for more information.