Closing a Mortgage Loan in the Month of December

As with many aspects of life we have seasons when things occur. We expect spring to be in full bloom, in the summer we expect sunshine and warm days, in the fall we expect leaves on the ground with a crisp in the air, and winter brings…home purchase loans? What?!? That’s a bit of a curveball, because we’re expecting snow in most of the country, but those who are hungry to get into their home before Christmas and New Year’s fervently work to close their purchase loans quickly.

So why does this happen? Year over year we witness this phenomena and over time we have deduced it really comes down to a few things which we have outlined below:

• Buyers who set out to buy their first home during the calendar year find themselves house hunting at the eleventh hour trying to achieve that milestone before the year ends. This is primarily a psychological metric; however, it still matters for local markets, especially to sellers who are on the other end of the deal hoping to sell their home before the end of year in order to achieve when they have set out for themselves in the new year. Basically local buyers are seeking to check this “to-do” off their list before the end of year. If this is you, be sure to contact your local mortgage expert to give yourself the best chance and marking this one complete!
• The mortgage market moves surprisingly swiftly in December. Despite federal holidays, national days off, county offices closures, there is a general lull in the overall loan volume the industry is trying to manage. Therefore, as a result people who want to get their loan complete in December might actually get it done quicker than loans that were done in a previous season of any calendar year. Mortgage offices are still as staffed as they were in previous months, but when total loan volumes are low, files which are open tend to be worked on more expeditiously during a customarily slower month for the industry. If you are looking for a quick mortgage loan closing, this may be the month for you!
• Sellers who know that buyers hungry in December sometimes wait until December to list their home for sale. They are hoping to get top dollar of course, but they are also expecting to find a buyer just as eager to buy as they are to sell. This pairing can generate some great momentum for both sides to move fast in order to achieve a quick closing while dodging holiday hecticness. Additionally, sellers who missed the summer frenzy of buying can find themselves in a bit of a no-man’s-land in the fall – Halloween, Thanksgiving…then wham! It’s December. Sellers who work with a local real estate expert know that December historically brings great sales prices and can still get great offers on the table.

If you are reading this article at any time in the month of December, don’t fret if you feel you missed the boat. January also tends to a lucrative time for buyers and sellers in the market. “Birds of a feather flock together” as the old saying goes and the same is true when the calendar turns into the new year. Sellers who want to sell, end up selling to buyers who want to buy. New Years resolutions, right?!?! Sellers who want to wait for the winter chill to thaw are better served selling in Spring when they will find buyers who also waited for winter shill to thaw with hopes to find more selection to choose from.

Chula Vista Mortgage Company

Lastly, a quick note about the mortgage rate side of this conversation:

If you are anticipating interest rate hikes in 2022 you may want to seriously consider doing your refinance in December, or at least have your application completed and escrow opened so your refinance can close in January. (by the way, if your refinance closes in January, your first payment on that new loan won’t be until March 2022, how nice is that?). With the federal reserve set to expedite their tapering program, higher interest rates are expected as the open market absorbs all risk on their own again. With home values at all time highs (and home equity as well) this could be the perfect time to complete your refinance. We are not promised low rates tomorrow or the next week or the next month. So take an honest assessment of your mortgage situation today. Ask yourself, where do you want to be tomorrow? Where do you need to be financially in 2022, 2023, 2024 and beyond? What should you be planning on today in order to reach the outcomes you home for tomorrow?

San Diego refinancing has been hot for more than a year yet there are still thousands of homeowners who can benefit from a rate & term or cash out refinance. Your local mortgage expert can help you align your end of year financial goals if you still need to refinance. Further, you may want to consider getting a jump start on your 2022 financial goals by applying now. Position yourself to win by getting a head start on your real estate and mortgage goals.

If you would like to speak with our team about your home loan questions, please complete the form below. You can also start your loan application online by APPLYING NOW.

Rates & Fees Disclosure:
^‡ The payment on a $300,000 30-year fixed-rate VA loan at 3.000% with a 80% loan-to-value ratio is $1,292.01 with 0 (zero) origination points due at closing. The annual percentage rate (APR) is 3.235%. Payment does not include tax and insurance premium impounds. The actual payment amount will be greater. By refinancing your existing loan, the total finance charges may be higher over the life of the loan. Some state and county maximum loan amount restrictions may apply. Appraisal fee of $600, Processing Fee of $895, Underwriting Fee of $795 included in APR calculations with borrower paying 0 (zero) loan origination points.

^‡ Based on Mortgage Heroes internal data.