Why Fall & Winter Are the Perfect Times to Buy a Home

Most people think they should wait until spring to get a good deal on a home. However, there are four reasons why fall and winter are actually the best seasons for home buyers.

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There are four main reasons why the fall and winter are the best times to buy a home rather than waiting for spring.

First of all, interest rates are low and money is cheap right now. Rates are hovering around 4%; if rates went up by 1%, the monthly payments for a $100,000 home would go up by $100. A 1% rate increase would mean that the payments for a $200,000 home would go up by $200 a month. To put that into perspective, you would be paying an extra $2,400 a year and an extra $72,000 over the life of a 30-year loan.

Secondly, when you buy in the fall or winter, you will face less competition. Fall means new inventory comes on the market and old inventory is repositioned. Typically, there are fewer buyers in the fall because they think they will get better deals in the spring. In reality, though, the opposite is true.

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Fall and winter are actually the best times to purchase a home.

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Sellers are also more serious in the fall. Most people who sell in the fall have to sell their houses, whereas some spring sellers might just be testing the market to see what they can get. Lowball offers and multiple offer situations typically aren’t an issue in the fall.

Finally, there are a lot of flexible loan programs available on the market for buyers right now. Some loan programs only require a 3% down payment; others go up to 20% down. If you qualify for a VA loan, you can purchase a new home with no money out of pocket.

If you start looking for a home in today’s market, you won’t be disappointed. If you have any questions about navigating the fall market or about real estate in general, give us a call or send us an email. We would be happy to help you!

What You Need to Know About the Northeast Ohio Home Buying Process

Selling in Northeast Ohio? Free home value report right here

 Buying in Northeast Ohio? Click here for full MLS access

Today, we’ll discuss the dos and don’ts of purchasing a home. Don Jarecki from First Federal Lakewood is here to offer expert advice on the home buying process. 

What should a buyer do to get to the closing table?
One of the first things you should do is check your credit score. Contact a lender and go through the pre-approval process. Once you determine that your credit is okay, they’ll allow you to purchase a house. You’ll find out what price range you should be in and what kind of down payment you will need. After that, talk with your real estate agent about what kind of home you’re looking for. 

What are some of the documents that buyers should prepare to get approved for a loan? 
You will need: one month of pay stubs; two years of tax returns and W2s; your last two months of bank statements; retirement and mutual funds; and valid photo ID. You may also need divorce decrees and bankruptcy documents. That documentation should suffice for any lender out there. 

What’s the difference between a pre-approval and pre-qualification? 
Here, you provide your information to a lender over the phone informally, without documentation. A pre-qualification isn’t as strong as a pre-approval, because a pre-approval requires documentation. 

A lot of buyers come in with online pre-quals. Are those accurate? 
For online pre-qualifications, you’re inputting information and no one can verify it. If your income or assets are entered incorrectly, you won’t receive accurate information.

What shouldn’t a buyer do when in the home buying process?
Don’t make any major purchases before or after you sign a purchase agreement. If you buy a car and you haven’t bought the home yet, you could jeopardize your home sale altogether.  Additionally, refrain from any large deposits into your checking or savings account because the lender will have to document that. Also, don’t move money around between checking and savings, because that will make things confusing for the lender to document sufficient funds for closing. 

What’s the biggest delay in a loan?
Documenting funds to close is probably the biggest difficulty for lenders today. Buyers have a tough time coming up with funds, and documenting that is the toughest job for the lender. 

Are there any other tips to help during the home buying process?  
Whatever your lender asks you to do, whatever documentation your lender asks you to provide, get it to them the day before they want it. The sooner you provide information, the better. Don’t waste time asking why the lender needs that information; they are trying to get you to the closing table. Just get them the paperwork. That will keep the loan process moving smoothly and get you to the end with the least amount of hassle. 

If you have any questions for Don, you can reach him at (216) 347-3900, or email him at djarecki@ffl.net. As always, if you have any questions for us, give us a call or send us an email. We would be happy to help you!

Are You Ready to Buy in Brunswick?

Selling in Northeast Ohio? Free home value report right here

 Buying in Northeast Ohio? Click here for full MLS access. 

As the spring real estate season quickly approaches, we thought now would be a great time to answer the question: "How do I know if I am ready to buy a home?" Many buyers and sellers start to flood the Brunswick market during this time, so being prepared is very important if you want to accomplish your real estate goals. 

Before you begin the buying process, ask yourself the following questions:

• Do I have a steady source of income?
• Have I been employed on a regular basis over the last 2-3 years?
• Is my income reliable?
• Do I have a good record of paying my bills? 
• Do I have a few outstanding long-term debts?
• Do I have money saved for a down payment?
• Do I have the ability to pay a mortgage? 

Once you've answered these questions and determined if you are ready to buy a home, where do you begin?

Well, the first step is to get pre-approved by a lender. After that is done, you can then contact a local real estate professional to get an evaluation on your current home. Next, sit down with a buyer specialist to go over the entire process and discuss your needs and priorities regarding the home you are looking to purchase. 

Once you've begun the search, how many homes should you look at before choosing one? It really depends on the results of your needs analysis, as determined during our buyer consultation. Once you find a home, you will need to obtain homeowners insurance. Since purchasing a home is a huge investment, you want to protect your assets by purchasing insurance. Trust us, it's more than worth it! 

When making an offer, you will be assisted by your buyer's specialist. You will complete a purchase contract, which includes the amount for the earnest-money deposit, the proposed move-in date, the price you're offering, the proposed closing date, the length of time the offer is valid, and details of the deal. The sale commitment depends on negotiating a satisfactory contract with the seller, not just making an offer. 

There are many different types of loans available that you can choose from when purchasing a home. USDA, FHA, VA, and conventional home loans each offer different advantages, and there are many mortgage packages available for first-time buyers as well. If you have any questions, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you and help you take advantage of some of these fantastic opportunities!