The COVID-19 pandemic has entirely changed the way everyone’s lives work, including the home mortgage industry. Although you can still buy a home, there are a few changes that you may encounter when applying for a mortgage.
Although the economy has been hit hard by the virus, the residential real estate held itself up pretty well. Over 56% of homes sold last April 2020 were only on the market for less than 30 days.
The increasing buyer demand fuels the strength of the home mortgage industry because of the low mortgage rates. With vast numbers of aspiring home buyers, the market has become competitive. As a result, prospective homeowners need to decide quickly. Otherwise, they’ll get left out in the cold. To help you out with it, here are a couple of pointers that you need to remember when buying a house in 2020.
Be swift
If you want to own a quality house from the Hudson Real Estate Group, you need to decide as swiftly as possible. Keep in mind that well-maintained homes with appropriate pricing often sell fast when it’s on the market. If you like a particular house, you need to ensure that your offer is well-prepared. Keep in mind that the seller will have a lot of requests waiting. So they don’t have enough patience to wait for anyone to decide.
Know what you can afford.
When buying a house, you need to determine how much you can afford. One rule-of-thumb for aspiring homeowners is to consider the household’s combined income as an ideal starting point. For example, if you and your partner’s combined yearly income reaches $120,00, then $350,000 is a potential price range. But still, the best way is to ask your lender about it.
The mortgage industry has entirely changed this year. Now, borrowers with an ideal credit standing won’t have any issues getting their mortgages approved. But even if the pandemic disrupted the entire process for everyone, it’s not the case for everyone. People with low credit standing or self-employed still have a difficult time applying for a mortgage. That’s why you need to ensure that you check your credit score before you buy any house.
Hire an experienced agent
If you want to get the best deals, hiring someone with a solid track record is the best way to do it. You want to work with a proactive real estate agent who’s available any time you need him. It’s also best to work with someone who can actively search for any off-the-market properties. Doing so will help you get access to better deals. Usually, well-experienced agents already have an extensive network of contacts. They can help you get information about homes that’ll be on the market soon. Having this access allows you to get in touch with sellers faster than other potential buyers.
While the economy is still likely to change for the next few years, the real estate industry remains an excellent form of investment. So, try to check your budget and see if you can afford it. What’s important is that you’ll have a place to call your own in the coming years.
