Real estate hit a major block when the pandemic kept the world in lockdown. People were scared of going out, and the economy is experiencing a global downturn with the possibilities of a recession on the horizon.
But as the world eases in with the resume of operations for businesses bit by bit, opportunities in real estate are starting to float back in the market. It’s worth noting that health and safety are still priorities nowadays.
Factors to Consider Before Buying a Dream Home
Following specific guidelines should help you navigate the market with caution and protection. With that in mind, are some things to consider when you are on a lookout for a new home amidst the coronavirus outbreak:
- New Transaction Processes Can be Longer and More Difficult. Expect a new norm with the current situation we have because everything puts protocols on health and safety at the forefront. Moving forward, there are higher chances of low inventories and delays in the schedule when viewing homes or getting appraisals. Nowadays, online conferences such as Facetime and Zoom work as effective communication avenues between buyers and sellers. Paperworks and signatures are now replaced with contactless methods, therefore reducing the risk of safety and protection. But with the uncertainty of today’s market situation amidst a pandemic, buyers are encouraged to have a good credit rating, a secured job, and patience. With these critical factors, give yourself some credit by finding a realtor that you can trust, so you know that your investment will be worth it.
- Complete the Mortgage Prequalification Process. To ensure that your transaction goes smoothly, getting prequalified for a mortgage allows you to get your financial institution’s initial parameters. This means it can help you choose a house you can afford. It’s as easy as completing a form and getting evaluated for your credit, employment status, salary rate, debt, and asset information so you can define the maximum amount you can lend for your house.
- Secure Your Budget. While the prequalification gives you a visible idea of how much you can lend, it’s crucial to consider other expenses that may add to your overall spendings. This includes additional costs that can skyrocket your budget for the house, but the key is to avoid spending 28 percent of your budget on housing expenses, including mortgage, insurance, and taxes. With more room in your budget, you can also allocate for small fees that can add a hefty amount to your total expenses such as your transportation, monthly Home Owner Association dues, home inspections, repairs, and more. Evaluating these out of your home expenses will free you from the worries of spending beyond your means, allowing you to settle into your new home without going into debt.
The Bottom Line: Facing The Music In Real Estate In A Post-Coronavirus World
The COVID-19 outbreak has put several aspects of the economy in a massive downturn, especially in the real estate industry. While the higher housing prices benefit sellers, first-time buyers may find it challenging to navigate the market amidst the pandemic.
Since banks are rarely dependable for your mortgage needs during these confusing times, finding the right mortgage provider can make all the difference in your home-buying experience this 2020.
How Can We Help?
We’re a licensed mortgage originator in Detroit, Michigan, that strives to help people turn their dream homes into reality. With our client-centric and tailored loan services, we can help you reach your financial goals. Feel free to contact us (248) 930-8709.