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MORTGAGE KNOWLEDGE CENTER

PenFed Mortgage with Confidence

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CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

  1. Home
  2. Mortgage Knowledge Center
  3. Tips for Buying a Home in the Summer

MORTGAGE

Summer Home Buying Tips

EXPECTED READ TIME:4 MINUTES

April 30, 2021

What home shopper doesn't want to know the best month to buy a house. Buying a house in summer works well for families with kids in school. In this article, we'll discuss the pros and cons of purchasing a home in June, July, and August. Read on to see if this is the best season for you and your next move.

Is summer the best time of year to buy a home?

Under certain circumstances, the summer real estate market could be the absolute best and only time for you to buy. If you're selling your current house, you'll want to have it on the market in early spring. That will give you the funding for your new home. You can schedule concurrent closings where the home you're selling closes the day before or the same day as the one you're buying. 

Summer is perfect for parents who don't want to move in the middle of the year — especially if it involves changing schools. Because of that, summer real estate can be an active market. If you're moving to another town or even another state, summer is also one of the best times.

But prices will be higher than other times of the year. So as a buyer, you have to be ready. Here are three tips to get you the home of your dreams:

3 Tips for Buying a House in Summer

  • Have a solid pre-qualification letter from a well-known lender ready to go.
  • Save up for a substantial earnest money deposit to show the seller you're serious.
  • View homes as soon as they come on the market and watch for homes falling out of escrow.

Are more houses for sale in summer?

There are more properties for sale in spring and summer. The busiest months for sales are traditionally May, June, July, and August. But just because there are more homes for sale doesn't mean you'll find any great deals. Sellers have been waiting for the nice weather and are hoping to sell their homes for top dollar.

If you're not pressed for time, wait for the end of summer. You may see some price reductions. And don't be scared away from homes that have been on the market for a while. You never know the circumstances. Sometimes your agent can ask the listing agent why the home has been on the market for so long. It could be the house was in escrow, but the last borrower's financing fell through.

Buying a home in the summer may be your only choice if you're relocating to another state or city far away from your current location.

Buying a House in July

The busiest months for real estate can also depend on where you live. Traditionally more homes sell in the summer than any other season, except in certain parts of the country that get blistering hot like Phoenix, Las Vegas, Tucson, Riverside, San Antonio, Miami, and Houston. With temperatures hitting over 100 degrees day after day, driving around looking at homes isn't very appealing.

In those blistering areas, smart sellers and buyers plan ahead. Their real estate season may start in winter and spring when it's cooler. But, purchasing a home in July can still be accomplished in these hot spots, especially with so many homes available for online viewing.

No matter where you're located, ensure that you have a knowledgeable local real estate agent for the most success. When they know the particular area, you're interested in, they can help you craft the best offer.

What is the best month to buy a house?

There are some excellent advantages to buying a house in August. The inventory levels are still high, but prices are starting to come down. Plus, by waiting until the end of the summer, you've hopefully had time for a vacation in June or July. Then when you're all rested up — you'll have the energy and enthusiasm for your move.

If you have children attending the same school — moving close to the start of the year won't be an issue.

More deals in August may be available as motivated sellers want to sell and move before the cold weather hits.

What is the best season to buy a house?

The best time of year to buy real estate depends on your circumstances. Any month could be the perfect month for you. But if the price is of significant importance — avoid early summer. When sellers are just getting their homes on the market, they won't be in any frame of mind to lower their price. Have patience and wait till the end of summer. You could be surprised and find a home you were interested in earlier has now reduced its price.

Here's another tip if you're trying to save money on purchasing a home. Don't forget to watch the interest rates. With record-low mortgage rates, you may be able to afford more than you thought you could. 

The professional mortgage team at PenFed hopes you've enjoyed this information about summer home buying. Please keep us in mind the next time you need a new mortgage or are thinking about refinancing.

For more information about PenFed Mortgages:
 

PenFed Mortgage: 

800-970-7766

Get Started

SIMILAR ARTICLES

10 Things to Do If You Plan to Buy a House in 6 Months

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Comparing Types of Mortgages

Need tips for comparing types of mortgages? Discover the answers to what different types of mortgages are available and what type of mortgage is best for you.
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How Much Home Can You Afford?

Buying a home can be exciting, but are you dwelling about homeownership costs and how much you can afford? PenFed provides a closer look at homebuying budget basics.
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Spring Real Estate Market Buying Tips

Spring is the best time of the year to buy a house. Discover our spring real estate market buying tips like when the season starts and its busiest months.
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image

CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Home Buying Steps

  • Getting Started
  • Finding a Home
  • Getting a Mortgage
  • Home Ownership

Mortgage Topics

  • VA Loans
  • Conventional Loans
  • First Time Homebuyer
  • Home Equity
  • Homebuying 101
  • Checklists
  • Adjustable Rate Mortgages
  • PenFed Top 10
  • Refinance
  • Jumbo Loans
  • FHA
  • Videos

Mortgage Products

  • Mortgage Center
  • Refinancing
  • Home Equity

PenFed HELOC

Rates as Low as % APR* with flexible use of funds

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Disclosures

1Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.

*Prime Rate is % as of . The APR for this Home Equity Line of Credit (HELOC) is based on prime plus a margin and can change monthly. Fixed Rate Advances will be amortized over the Fixed Rate Advance Term, with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin, and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes.

  • Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary.
  • Home equity lines of credit (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis. Closing costs range between $500 and $8,500 for credit lines of $500,000. Contact a representative for additional details.

Appraisals: PenFed will attempt to establish value via an independent method. If that method is unsuccessful, or the value is not sufficient for the amount requested, an appraisal will be required regardless of CLTV. An appraisal is always required in the following circumstances:

For all loans with a loan amount greater than $400,000.

If an appraisal is required, it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $550 to $850 (some run higher).

  • Closing Cost Credit: PenFed will pay most closing costs associated with a home equity line of credit (HELOC), which includes credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county, and/or state taxes if the subject property is located in FL, LA, MD, MN, NY, TN, or VA. If an appraisal is required, the member, who is responsible for the fee whether or not the loan closes, will pay the cost.

Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Draw Period. During your Draw Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.

Fixed Rate Advances will be amortized over the Fixed Rate Advance Term with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes and 4.75% for investment properties.

Property Insurance: Property insurance is required.

Multiple PenFed Loans: Multiple PenFed Equity loans and HELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and HELOCs the total indebtedness cannot exceed $500,000 for all PenFed Equity and HELOCs combined.

PenFed does not lend on:

  • Mobile homes
  • Co-ops or time-shares
  • Properties that are currently listed on the market for sale
  • Commercial property or property used for commercial purposes, even if a residence is part of the property
  • Undeveloped property (land only)
  • Properties with more than 4 units

Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

  • Additional limitations may apply

Home Equity Line of Credit:

  • This Account has a Draw Period of 10 years, followed by a repayment period of 20 years.
  • If only minimum payments are made during the draw period, the loan balance will not decrease.
  • In Texas, the maximum CLTV available is 80% on owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
  • In all other states, the maximum CLTV is 85% on owner occupied properties and second homes. Additional restrictions or requirements may apply based on application characteristics.
  • Property type of Condo has a maximum CLTV of 80%.
  • The maximum CLTV available is dependent on credit qualification.
  • Rates vary depending on owner occupancy and CLTV and other loan criteria.

Minimum Loan Amount Requirements in all States:

  • For an owner occupied property or second home the minimum loan amount is $25,000 and the maximum amount is $500,000 with a CLTV of 85% or less of the fair market value.

Other terms and conditions apply; call 844-918-4307 to speak with a representative for details. All rates and offers are subject to change without notice. To receive advertised product, you must become a member of PenFed.

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This credit union is federally insured by the National Credit Union Administration. Rates are current as of September 2023 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


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You are leaving PenFed.org and entering a third party Website that is not a part of Pentagon Federal Credit Union.


The content you are about to view is produced by a third party unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Realty, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Realty, LLC, see the Affiliate Business Arrangement Disclosure.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website.


The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Title, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Title, LLC, see the Affiliate Business Arrangement Disclosure.


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