Real Estate News

Personal goals and timing make home financing easier

Published: 24 Jan 2017

The process of preparing to buy a home may be a little different for every person. It's important to understand what costs are necessary and how to arrange it in the proper amount of time. And this can have a significant effect, given the different ways markets fluctuate throughout the year.

The lack of demand in the housing market during winter can put buyers into a position of power, as one Washington Post article noted. Even deals done around the hectic holiday season, the source said, could end up being in the potential owner's favor.

With a winter mortgage, the negotiation could go smoother when the buyer is able to be a little more flexible. The trade-off, though, may come in the type of home available, so if this is part of your strategy, it could be wise to plan for it in advance to match your financial businesses. There's also a kind of urgency to make deals in this season that could play into the buyer's hand.

In a Forbes piece, a contributor gave some guidance for how to prepare a purchase, working toward a 20 percent down payment to avoid Private Mortgage Insurance. This additional insurance  could add another cost on top of the original mortgage for the new buyer. In addition, this needs to be part of a larger consideration, as you think of the long-term effects of living in a certain area, so the initial cost estimate matches the further costs of actually relocating.

This brings us to title insurance. With the cost of protecting title worked into your payment, you may have a better understanding of the true cost of purchase, as well as important defense against costly legal fees, should a challenge appear.