Holiday Topics in the Mortgage Lending World

In the whirlwind of the holiday season, we recognize that this time of year can be both crazy and enlightening for many. Amidst the hustle and bustle, it’s not uncommon for important discussions about homes and future plans to surface. We wanted to round up some common holiday topics and themes we see in the lending world this time of year and cover them all in a holiday-themed blog. ‘Tis the season for pre-approvals, goals for the new year, and holiday credit tips!  

Looking for a New Home After The Holidays? Get Pre-Approved Now! 

Believe it or not, we get pretty busy after the holidays! We have a lot of clients who come to us in January after their routine starts to return to normal and tell us that the holiday season actually made them realize it was time to buy a new home. 

Having family gatherings, parties, and decorations up may make some people realize that they have outgrown their home and it is time to get back into the market. 

On the other side of the coin, we’ve also had clients who have realized it may be time to downsize after the holiday season is through. Either way, this time of year often brings out the reflective side of many! 

What does it mean in the lending world? Well, we love to be busy, so we’re going to be bright-eyed and bushy-tailed through the holidays and after, ready and eager to help you get pre-approved if that’s what you want to do. 

If you think you may want to buy a home directly after the holiday season concludes, consider getting pre-approved now! Then, you can start looking early and put the stress of starting the process behind you as you enter into the season of time off and relaxation. It may even be possible to get an offer in and approved before the end of December, so you can check getting a new home off your pre-holiday to-do list. 

There is one thing we want to emphasize as we head into 2024 for all the new potential homebuyers. Make sure you’re looking at the overall payment of the home rather than just the interest rate. Everyone is feeling the financial crunch at this point of the year—but if you can afford the overall payment—then getting into a home is better than waiting. We’ll be back to touch on this topic more in January. For now—if you want to get pre-approved before the holidays, reach out to us, and we’ll be more than happy to help! 

Setting Goals for the New Year

On that note, if you know that buying a home in 2024 is a goal of yours, but you just aren’t sure how to start or where to begin, we’ve some suggestions. We cover this topic extensively in another blog on our site, so be sure to check that out as well. 

You can start by putting aside a little extra money each month so you have some on hand for later in the year for closing costs, prepaids, the inspection, and/or down payment (visit our blog from last month on how to avoid a down payment!) 

You may also want to do renovations or buy furniture for your new home, and having extra money set aside for these goals never hurts. However, putting money aside is easier said than done, especially this time of year, we know that. 

So we suggest reaching out to us so we can tell you which loan programs might work for you and walk with you through your specific situation so we can tell you what you need to do to be in a position to buy more comfortably. Sometimes, less money is needed than you think, and there are even assistance programs that can help a lot of people with the finances of closing on a home. There are a lot of myths swirling around out there about down-payments and other home-buying costs, so just talk to us first so we can help you save with a purpose and a plan! 

Similarly, if your credit isn’t in the best shape, reach out to us now! We can offer tips and guidance to get your credit up to the best score it can be before pre-approval. Every little point counts. For example, a change from a 720 score to a 740 score may seem like a small amount, but it can really reduce your interest rate, so as you get close to buying a home, any credit card balances you can pay down to bring that score up helps. We also work with Heartland Credit Restoration, whose main job and focus is helping people raise their credit scores to get them into the best position possible for buying a home. 

Ultimately, even if you don’t think you’re ready for pre-approval, reaching out to a mortgage lender is your best bet if home-buying is on your goal list for the new year. Sometimes, you just don’t know what you don’t know, and we can assess your situation and tell you what you need to be doing specifically to get into the best position possible for buying a home. Let’s make 2024 the year you buy! 

General Holiday Credit Tips 

To go off of some of the credit goals we listed above, we want to specifically address this time of year and give some credit tips for gift-buying—and financing. We’ve seen the holidays trip some people up in the past. We don’t want any silly mistakes to keep clients from getting pre-approved or closing on their homes! Sometimes, even the most minor of credit mishaps can have some unintended consequences

1. Don’t open up new lines of credit in stores only to save on gift-buying because it could lead to a ding in your credit score! The discount isn’t worth the credit ding—not if you’re waiting to close on your home or you want to buy one in the new year. 
2. Watch what you’re putting on your card. We know this time of year is stressful financially for a lot of people, but don’t overspend on your card if you know you might have a hard time paying it off later. Keep your gift-giving within your means. Gifts aren’t worth going into debt over! 
3. Save the elaborate gifts for another year . . . if this is the year you’re buying a home, whether you’re waiting to close or just starting to look, don’t go buying a car, financing furniture, or expensive jewelry! Your loan is depending on your restraint—your family and friends will understand! 

Happy Holidays, and Thank You For a Great Year!  

In the midst of the festive chaos, we understand that this time of year can be overwhelming for many. As mortgage lenders, our goal is to make the home-buying process as seamless and stress-free as possible. 

If you find yourself yearning for the comfort of a new home after a stressful holiday season, or if there is anything we can do to simplify your journey, please don’t hesitate to reach out. 

Whether it’s answering questions, providing guidance, or tailoring solutions to suit your unique needs, we are here to help make your homeownership dreams a reality. And finally —happy holidays from all of us at Residential Mortgage Network! It has been another great year of doing what we love, and we thank you all for making it possible!