Lending has changed considerable over the last 8 years. At one time there were hundreds of different loan programs available. Everything at one time fell under three main types: Conventional, Alta A and Sub-Prime. Today there are just four total. They are Conventional, FHA, VA, and USDA Home Loans. Depending on a borrowers available funds for down payment and credit history is mostly how these loans are determined. Conventional loans typically see borrowers with better credit scores and at least 5% to put down. VA loans (veterans home loans) are 100% no money down but are only for Veterans. FHA loans allow some flexibility in credit and only require 3.5% down. USDA loans are 100% no money down with have flexible credit requirements but they have to be in a qualifying area.
If your thinking about buying a home this fall is a great time to do it. Mortgage rates continue to be at all time lows and the housing market typically cools a bit in the fall thus making sellers more willing to negotiate. Most lenders also have a tendency to get more aggressive with interest rates and credit flexibility because its a slower time of year. Once a buyer determines what lender they plan on using the next thing to decide is what type of loan best fits their needs.. There are basically four main types of loans available today and they are Conventional, FHA, VA, and USDA Home Loans.
Once the loan type is determined and the lender pre-approves the buyer then an offer needs to be made. This is the time when the seasonal market adjustment comes in to play because homes are typically staying on the market a little longer so when a seller gets a offer there is usually more room for negotiation. Its not uncommon for a buyer to ask for some if not all of their closing costs to be paid. On loan types such as the VA and USDA this often leads to the buyers to not have to come out of pocket any money during the transaction because these two loans are 100% no money down. The Conventional and FHA loan only require minimal down payments.
Besides the loan process and willingness of the seller to negotiate other things in a typical real estate transaction can be cheaper during this time of year as well. Moving companies for example are usually slower in the Fall and Winter and its not uncommon to see them lower rates. Bug Control companies are the same way as well so a buyer has flexibility when purchasing long term services. Cable and Satellite providers usually run winter specials that are not seen in other months. The list goes on and on.
While many think Summer is a great time to buy a home Fall can be as well. If a buyer takes the time to shop for all services associated with a home purchase they can usually save a lot of money in the fall. Besides saving money home purchases in the fall allow buyers to get settled in just in time for Christmas.