The infamous Coronavirus pandemic has pushed most of our day to day routines into mayhem and has created a health disaster so widespread that it has led to turmoil in each and every sphere of life. For the real estate enthusiasts and professionals, buying a home during the pandemic has become a major cause to ponder over.
If your plan of buying a home has lingered on and has remained in your bucket list for long due to the COVID outbreak, the wait can be really frustrating. Hoping for the pandemic to be over, if that ever happens, is not going to help. While the sales of single-family homes are still going on, as per the figures, the buying behavior is not as frequent as the previous years albeit things are improving. It is very much possible to buy a home during the pandemic although a number of fresh considerations need to be taken into account before reading a buying plan. A lot has changed in the past few months and we all need to embrace these changes as we step into exploring the real estate sector nowadays.
PLAN A FINANCING PROCESS
In the recent past, health concerns and questions about the impact of COVID-19 have been haunting us. The pandemic has created financial problems and the impact of COVID-19 on real estate can be readily felt. Layoffs have become commonplace among workplaces, furloughs, and the stock market showing a downward trend has become a matter of concern. Before you get taken away by the historic drop in interest rates, introspect, and ensure that your financial condition currently is apt and stable. This is the key to a successful homebuying experience.
MAKE SURE YOU HAVE A STABLE JOB
Yes, the mere thought of buying a new home is exhilarating. Buying a home during the pandemic could be your plan but be careful with your finances. If you have been laid-off recently or maybe furloughed by sustaining an uneven and drastic pay cut, this might not be the right time to make a huge decision. Consider waiting till things get more stable on the personal front and you get better mortgage options. There is nothing more important than peace of mind.
ARE YOUR SAVINGS STILL PRESERVED?This one is important. Make sure you have not fiddled with your savings in the recent months. If you have, the best idea would be to first stabilize your money before putting down a deposit on a new home. You would likely be required to pay for private mortgage insurance which most lenders require if you put lower than 20% of the total value. You also need to keep in mind that the new home would mean additional expenses like electricity & utility bills, etc.
THINGS HAVE CHANGED, QUALIFICATIONS DO MATTER AT TIMES
A lot has changed when it comes to qualifying for a mortgage when buying a new home during the pandemic. The global situation has led to financial uncertainty and due to this, many lenders have now set strict criteria for those applying for mortgages. This clearly indicates that a lower credit score can make it difficult for you to get a mortgage.
AN ERA OF SOCIAL DISTANCING
The government regulations on social distancing laws vary from state to county and city. It is important that you should ascertain the laws at your place before moving forward to buy a home during the pandemic. For now, most real estate agents rely on virtual tours and internet-based options. Be safe, your health is always a priority.
CHANGES YOU CAN EXPECT
In the wake of COVID-19 spread, there are a substantial number of changes taking place in the real estate sector. For instance, most home inspectors are working on their own nowadays. While you proceed to buy a home during the pandemic, make sure you follow all safety guidelines that make the entire process safe and progressive for everyone.