Every household in the United States is affected by the COVID 19 pandemic. It affects their finances, their jobs, and their quality of life. Buying a home is a superior financial decision. The news that several COVID-19 vaccines are in the pipeline for distribution next year should alert buyers to the potential impact on the housing market. We could see an influx of buyers and sellers. It could lead to a more competitive housing market. It is why you should be more careful when buying a new house in this situation. There are many factors to consider, especially in the face of a global pandemic. You can discover new home purchase tips over the internet. Here are some of the things potential buyers should consider before purchasing a home during the coronavirus outbreak.
Interest Rates
Freddie Mac reports that interest rates have fallen to historic lows. The average rate on 30-year fixed mortgages fell to 2.71%. It is the lowest rate in more than 50 years. In the week ending December 3, 2020, interest rates on 15-year mortgages fell to 2.26%. The most popular type of loan for home purchases is the conventional fixed-rate mortgage. Fixed-rate loans lock in the interest rate for the entire term and offer monthly payments throughout the course. Buyers should lock in their interest rate as soon as possible as interest rates are at their lowest point.
Real Estate Trends
Due to record low-interest rates, the supply of real estate is limited at the moment. It is because people are buying homes. It means that real estate prices will rise as buyers’ demand for homes increases. According to the National Association of Realtors, sales were up 26.6 percent from October a year ago and 4.3 percent from the previous month. That brings us to an adjusted annual rate of 6.85 million existing-home sales. Condominiums, master-planned communities, and single-family homes are included in existing home sales. Given the low-interest rates, this could be a good time for buyers to purchase a home. Therefore, examining real estate trends is beneficial after evaluating the interest rates.
Mortgage Pre-Approval
Getting pre-approved for a mortgage is a good idea if you are serious about buying a home. It may be different in times of pandemic. While it’s not always possible to meet with a lender in person, potential buyers can view their options online and apply for financing. Their selections are not limited if the buyer has a regular income, a large down payment, and a good credit score.
There are special programs for first-time buyers, poor credit, or those in a particular situation. You can research online to see if there are options or if you need to meet with a lender in person. Approval letters usually take 60 to 90 days once you receive your mortgage pre-approval. However, each lender may vary. Be sure to read all terms and conditions. Timing is essential when buying a home. It is wise to stay within the terms of the letter to get the same rates and terms.
A Regular Income Stream
Your income stream is an essential factor in deciding whether or not you should buy a home. Twenty-five percent of U.S. adults lost their jobs this year. It can be challenging to get a home loan, pay off a mortgage or cover the additional costs associated with buying a home if you don’t have a steady income stream and financial stability. These costs include closing costs, title fees, mortgage insurance costs, property taxes, and title fees. You should be aware that there will be many excluded expenses in your mortgage loan. You may be able to negotiate a lower rate or a different program.