When is the Best Time of Year to Apply for a Mortgage?

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Have you ever wondered when the best time of year to apply for a mortgage is? Or, have you wondered if there is a “best” time of year to apply for a mortgage?


There are a few things that influence the best time of year to apply for a mortgage and ultimately buy a home. 

a man points from behind a desk at a house replica and a calculator
The time of the year that you apply for a mortgage could impact your interest rate and how much you will pay.


Applying for a Mortgage in Fall or Winter

Typically as soon as summer ends, sellers become more motivated to sell their homes and drop the prices for fall. This trend of dropping prices in an effort to sell continues throughout the winter, so as a potential buyer, you may find the best prices on homes in fall and headed into winter. 


Historically data has shown that sellers drop prices most right before the end of the year in an attempt to sell their house and show a tax write off for the calendar year.


Another additional benefit to buying a home and applying for a mortgage in the fall or winter months is that real estate agents typically have fewer clients, which means they have more time to walk you through the home buying process from start to finish. This may be especially helpful to first time home buyers or those applying for their first mortgage.


The same trend of having fewer clients can apply to mortgage lenders too. Since there are fewer homebuyers in the fall and winter, there are fewer people applying for mortgages. This may mean that a lender is more likely to give you a better rate at this time or work with you if you have less than favorable credit in the past. 


Applying for a Mortgage in Spring or Summer

On the other hand, the housing market tends to heat up each spring and into summer as children end the school year and families become more open to the possibility of moving. 


Buying in spring or summer means that houses will list and sell for top dollar, meaning that you may have to pay more up front as a down payment and closing costs and long term in your monthly mortgage payments than you originally anticipated.


While seasonality plays a part in the best time of year to apply for a mortgage in order to get competitive rates, ultimately the best time of year to apply for a mortgage is whenever the time is right for you to personally purchase a home and you are ready to take on the financial commitment that comes with a mortgage. 


Are you interested in getting preapproved for a mortgage? We’re here to help!


We want our members to find the option that works best for their needs. We offer many options for those looking to purchase or refinance a home. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or contact us for more information. NMLS ID 666196