Do I have to buy a house in the spring? Can I wait til fall?? (agents, commission)
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I'd suggest the lender leave the real estating to your agent, and him handle the financing.
It's great that you got prequalified so far in advance, because now you know what your financial picture and credit score need to look like WHEN you do actually buy.
It also allows you the opportunity to really learn the market, hand in hand with your Buyer's Agent, so you know which neighborhoods, lot considerations, and style of home you will buy.
As to now vs later, I'd suggest this:
1. truly determine what the terms of your lease are. Some leases allow you to terminate with just the 2 months notice....many more DO NOT but tenants just remember the "60 days notice before lease end" portion of the paperwork. It's entirely possible that you're on the hook through November.
2. Then, your Buyer's agent can tell you where prices have been and where they are LIKELY headed (we don't have a crystal ball). Will the 6-7 months wind up "costing" you more in purchase price for waiting than your $2K?
3. Same question of the lender, and your own research - where are rates likely to be by the end of the year? a 1/2% change is going to cost you about $70/mo - and that would appear to be about 1/2 your raise.
Are you going to an independent mortgage broker or a bank's mortgage broker?
Bank's mortgage brokers are usually less pushy.
Recently, I asked my real estate agent when was the best time to list my house. His answer was there isn't a best anymore. Must be true, my previous home sold in January.
I am currently renting an apartment and my lease ends on Nov 15th. A mortgage lender has advised me and created a sense of urgency that I should buy a house NOW in the spring time because that's when the "best" houses pop up on the market. He said that by the time school starts, the housing market is full of leftovers that no one wanted to buy, and so I'll be stuck with not-so-good options.
However, if I am to break my lease, it would cost me a fee of two months of rent, which would amount to $2,028! I was hoping to simply wait until Sep/Oct to buy a house (or condo) because it's close to the expiration of my lease and I wouldn't have to pay the $2K in fees. I would rather use that $2K toward the down payment on the house!
I have some doubts about what the mortgage lender guy told me though. Is it true that by September, the housing market is full of crappy leftover homes?? I thought maybe I could get a good deal at that time because school would have begun and there would be less competition with other buyers and maybe some sellers would be willing to cave in price a bit. Maybe??
I'm also expecting a potential pay raise and bonus in May. That would help my affordability and budget.
My budget would be up to $230K here in Jacksonville. But if I get the raise and bonus, then I could probably comfortably go up to $250K.
What should I do?
1. Change Lenders
2. Wait and buy in accordance with your situation, goals, and preference.
House-hunting during "peak season" was a miserable experience; there may be more inventory, but there are also more buyers to compete with. After the third bidding war, we called it quits. Then, in December we happened upon a fairly new listing (a couple of weeks on the market)... we ended up being the only bidders. It was a bit precarious to move in the dead of winter, with kids changing schools, but we managed to close in between two snow storms.
Last edited by Ginge McFantaPants; 03-15-2019 at 12:17 PM..
In Florida, it seems like lots of people sell during the cooler months. I wouldn't work with a lender who was trying to convince me to buy at a time that wasn't good for me. Remember that they are just trying to drum up business and aren't necessarily looking out for your best interest.
Agreed. That's what it sounds like. Usually, the sentiment is true that in the spring, more inventory pops up. But the rush is usually aimed at families who have kids in school, that's why you see so many buyers pop-up. They want to find a house to settle into before the school year starts in the fall. If you're childless, I wouldn't even worry about rushing right now, just take your time.
I found the perfect house for me two weeks before Christmas. It was really lucky that I did as I was commuting back & forth 2 hours each way and staying in hotels for a new job. Since then I have watched the real estate come and go out of curiosity and there has not been even one house listed in this town since that would have worked for me.
The right time of year to look for a house is the time of year that works best for you.
Actually, I just thought of a good reason to simply wait until September/October. Over those next 6 months, I will be saving $825 a month. That means I will have saved up $4,950. Since I will be putting anywhere from 10-15% down on the house, that means simply waiting and saving for six months, I will be able to afford a house that's up to $49,500 nicer, right??? That would be worth the wait.
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