Are you looking for a new home? Then you have probably found your plans unfortunately halted by the coronavirus. We’re not surprised. The pandemic threw the industry into a complete turmoil with the volatile interest rates, the canceled open houses, the extended wait times. Yes. We have found ourselves in a unique situation where it doesn’t even matter anymore if it’s your first time buying a home or tenth. We have some tips for buying a home during this time as industry experts are finding themselves learning on the fly.
Now, you have two choices. You can decide to postpone buying your new property until the pandemic eventually subsides, or you can still push through purchasing a new home regardless of the road bumps ahead. Should you wish to brave the waters, then allow us to share with you a few tips that might help you out. Here they are:
1. Keep tabs of your credit score.
With the Federal Reserve and various financial and credit institutions pulling down interest rates and easing their requirements to accommodate more people and provide assistance in this time of need, one might think they won’t need to consider their credit scores anymore. Sadly, though, that is not the case. Mortgage rates themselves rely heavily on demand, and thus, can be quite unpredictable. This is why your credit score is even more crucial to proving your capacity to pay and your payment habits as well.
2. Check on your chosen loan product’s availability.
Speaking of the demand, this will also affect your chosen loan product’s availability. Fortunately, if your original plan runs cold, there are other products and living conditions that you can certainly look into. Getting personal loans for fair credit through LoanStart and other online lending companies is a start. Or you can even consider renting an apartment for the short term.
3. See if lower rates are available.
On the flip side, if there’s no demand at all, then lower rates are certainly available. Explore all your options as you can and take advantage of them as much as possible. In the coronavirus case, we see an increase in demand for other types of real estate properties, but as of the time of writing this, residential properties are not so much.
4. Research about closing cost assistance.
As we have mentioned above, there are various financial assistance programs to help those in need during this global pandemic. This includes those who are looking to apply for a mortgage, especially for those who are among the low to moderate-income tier. There are state housing finance agencies that offer a second mortgage loan to cover the down payment and closing costs aside from the actual mortgage.
5. Explore alternative home viewing options.
There are a few:
- Photo Tour. At the very least, you must obtain high-quality images of every room of the property that you want to get to get an idea of what you’re getting yourself into.
- Video Tour. See if you can request a video tour. Plus points if the seller has already filmed one. It just shows that he is devoted to making a sale during this pandemic, and he takes it very seriously. Just like the photos, though, make sure that the video is in high-resolution. The only thing that we don’t appreciate video tours is that it is controlled. You’re not really “exploring” the home on your own. This is the reason why we like the next option better.
- Virtual Tour. This is more technical than just a regular video tour, so don’t expect all dealers to have one. However, if indeed one does, make the most out of it, as if you’re taking an actual tour of the property.
- Live Tour. Finally, we understand that not everyone would feel comfortable buying a property that they have not seen with their own eyes. Just make sure that the owner has taken the necessary measures to disinfect the place and not view it with other people. Maintain social distancing. Don’t touch anything, and most of all, don’t touch your face. Wear proper personal protective equipment.
The only thing that we like with the previous digital methods is that, in the end, it will allow you to see multiple properties in one sitting in the safety and comforts of your own home.
Here’s a pro tip: Video and virtual tours will only let you see the house’s interiors. At the very least, you’ll get a beautiful view of the exteriors and the property’s backyard. This is the reason why we recommend you supplement your digital tours with Google Maps. It will allow you to see the environment that your house is in and a sneak peek into the type of community that your possible future home is located in.
6. Perform the closing digitally.
Our final tips for buying a home are around your options for closing. Traditionally closing are done with a notary present. However, doing so will undoubtedly expose you to the high risks you have avoided so far. Hence, if the dealer is dedicated to closing the deal, ask him to look for ways to perform the closing digitally. It’s important to note, though, that not all states allow this yet, but we believe that this process will be different after the pandemic.
Conclusion | Tips for Buying a Home
You see, there are certainly ways to buy your next property entirely online, from the application of financial assistance up to the closing procedure. We’re not saying that there aren’t disadvantages to this. For instance, it is rather easy to miss certain damages to the property like molds and leaks when you’re touring the house virtually. After all, who would create a tour to highlight the elements that they’d instead not let you see in the first place? Don’t forget you will still have the opportunity to have a an inspector go onsite prior to closing to ensure their are no issues.
A property might look wide in pictures, but it can be smaller in real life. We hope you gained some knowledge with our tips for buying a home during this pandemic, you certainly can. We wish you all the best!