Many people were already browsing the housing market before the coronavirus crisis. But once COVID hit the US, those same people tended to change their plans. Though the economy may seem turbulent right now, real estate agents have discussed what you should keep in mind when buying a property during the pandemic. Ultimately, you don’t have to put your search for the perfect home on hold forever.
First, before taking any other considerations into account, you need to make sure the home is still affordable. You’ll need to cover the mortgage, down payment, closing costs, and moving costs. Then you’ll need to pay for expenses like property taxes and ongoing maintenance.
It’s important for families who have experienced a negative financial impact from the pandemic to seriously evaluate whether you can afford a home. It’s also a good idea for high-risk individuals to remain as isolated as possible rather than going to open houses.
In the days of the pandemic, it might be more difficult to acquire a mortgage. Loans are difficult to secure no matter which lender you seek, since most lenders are exercising extreme caution in their mortgage approvals. Part of that is because of the instability of the job market. Lenders don’t want to approve a mortgage when the recipient may lose their job.
This means that lenders have stringent requirements. Many aren’t waiving the 20 percent down payment on a property, which takes many families out of the running. Lenders have also designed requirements for financial documentation that’s recent enough to prove a person hasn’t been laid off.
One of the better notes is that the mortgage interest rates on the market are at record lows. If you can meet the requirements, mortgages are extremely affordable. The overall interest rates for many deals are hovering around 3 percent.
If you believe you’ll be able to secure a loan and afford a home, the next step is to enter the market. It’s best to do local research prior to visiting homes. The real estate market varies widely these days, depending on your location. Some housing markets in cities with high infection rates have crumbled. But in other areas, the climate is specifically advantageous to homebuyers above home sellers.