Tips for Home Buying During COVID
This year has been a bit crazy to say the least, and with all this chaos and uncertainty people have questions. Through all of this uncertainty people still need homes, which has only increased due to the housing market seeing unprecedented growth due to historically low-interest rates. All around us, folks are looking to refinance, sell, or buy homes. This year mortgage rates fell below 3 percent as shown by lender Freddie Mac. All the while, we are experiencing a higher demand for homes. Buyers must contend with other buyers in the diminishing inventory of homes in your area. This calls for a good Realtor in your corner to help you find the best homes to pick from and secure you the best deal possible.
Some things to consider when choosing an agent and finding your ideal home:
1. Finding the Right Realtor
As mentioned before, interest rates on homes are at the lowest we’ve seen in decades! The whole of the housing industry is diligently working to keep the gears turning. It’s important to find a Realtor to be there for you and to assist you in the home buying process because buying a house is one of the biggest decisions of your life! The agent you choose, should be able to communicate with you effectively by phone, email, text. A good agent will walk you through the steps to attain your home so when the time is right you will be prepared to snatch it up. They will help you find the right house, submit your offer, negotiate on your behalf for the best price, guide you through the inspection and objection process, and handle all the legal paperwork necessary.
Key Team Properties Group at Keller Williams Realty Northern Colorado has the expertise to smoothly guide you through the Buying Process from Beginning to Close.
2. Get Pre-Approved for a Mortgage
A Mortgage Pre-Approval is a letter from a lender that shows the Buyers pre-approved purchase price. This letter is issued when the lender has verified the buyer’s finances (income and debt), credit score, and ability to pay. When that wonderful day of finding right home comes, the pre-approval letter makes your offer much stronger. During this time of COVID it may be difficult to meet with a lender face to face, however, most lenders will accept your loan application online, so plan on gathering your financial information in advance. First, check your credit score. A credit score of 620 or higher could qualify you for a conventional loan with a lower interest rate! Second, your W-2 from the last couple years and a list of asset information (bank statements, investment account statements). It is important that lenders look at your financial situation to make sure you can handle the loan. They will be looking at your credit and finances very closely. Although it may feel tedious, understand the lenders are working to protect their interest as well as yours.
3. House Tours in a Different Way
If allowed to go to an in-person open house be sure to follow the correct safety mandates set by your local state. Virtual tours are a way of conveniently and safely touring a home that have gained popularity out of necessity this year. Although it may be better to tour a home in person the virtual tours also give you and your agent an opportunity to search through many homes in a time-efficient way.
4. The Bidding War
There is a low inventory of homes and a high demand to purchase the available homes. The reality is that your dream home is just that for 3 to 9 other people. This is more reason to be prepared by having your lender letter in hand. Unfortunately, oftentimes, sellers drive up the price of their home and in doing so buyers will sometimes bid above their price range. Remember to stay within your budget. If you are outbid on a home, keep in mind that you will find another home that you will love and cherish.