Homebuying During the Pandemic: Fail-proofing Your Purchase

couple with newly bought home

A lot of important life-decisions were put on hold during the pandemic, and for a good reason. The situation is continually evolving and changing the dynamics in economies, health, and society. You may have been willing to patiently wait until the crisis ends, but seeing as that might take a long time yet, the best course of action is to move on with your plans. This is especially true if you’ve been looking forward to buying your dream house. Regardless if this is your first time making such a big purchase or you’ve been through this road before, you must acclimate yourself with the current realities of real estate.

Doing so will let you know whether your original plans can push through, what alternatives you can take, and if now is indeed the most opportune time for this purchase.

Expect Competition

You’d think that, with the current state of the pandemic, more people would want to wait for post-vaccine to buy a house. You and the few home buyers out there are an exemption, and you’re about to land the greatest deal in history. The reality is that the crisis hasn’t deterred people around the world from making their big purchases. In fact, recent reports show that the momentum is only expected to grow now that more and more sellers and buyers are finding ways to interact safely. While some continue to hold open houses, others are settling for virtual tours.

It would be best for you to re-enter the scene expecting to be in a bidding war with other buyers over your dream house. In case your preferences have changed due to the impact the pandemic had on your personal and professional life, it won’t be surprising that you’re now considering farmhouses with amazing views and lightning-quick internet connection.

Just know, however, that you’re one among hundreds of people in the market with this picture in mind. Rural homes bounced back in terms of pricing and are now some of the hottest options out there. In fact, it’s safe to say that prices are high right now and might stay that way for a while. To win against your competition in bidding wars, you’ll have to be equipped with enough cash to outdo them.

Be sure it’s the right time to buy

Now that you’ve got the right expectations, you have to think about the many compromises that could be in your path should you buy a house during the pandemic. One such compromise is not being able to view the house in person. Open houses may not be an option for you for a couple of reasons: social distancing orders within the region, you or family members being high-risk, and travel restrictions. Some buyers are okay with this, while others aren’t so trusting and will want to wait until an open-house is available so that they can view their options in person. If you’re more of the latter, don’t shun the opportunity to have virtual tours completely. They’re still helpful in narrowing down your options in huge states like Texas and might save you time house hunting in the future.

key inserted in a key hole

You’ll also want to speak to a mortgage broker to know the current state of lending. How are the interest rates, and what options do you have now that your financial situation has changed? Getting their insight is one of the best ways to determine whether now is the right time for you to buy a house or if it’s best to wait a little while longer.

Anticipate Doubt from Your Lender

You can’t blame lenders for giving you a hard time. Yes, it might feel like the scrutiny over your person, and financial capacities are over-the-top, but you’ll know exactly why when you glimpse the current state of mortgage forbearance. There are also plenty of people who can’t continue paying their mortgage altogether and end up in foreclosure. If you were in your lender’s shoes, you’d want to do whatever it takes to minimize these instances, too.

The best way they can do this is to shower you with paperwork. All the documents you’ll need to submit aim to prove that you’re financially stable enough to enter this transaction. One of the best methods to remedy this is to make the biggest down payment you’re capable of. This drastically reduces your loan and the chances of you failing to pay your mortgage.

It Takes Guts

Buying a house during the pandemic is a bold thing to do, given how uncertain the times are. With that, if you feel that the current situation isn’t personally worrisome enough to stop you from making the purchase, then, by all means, proceed. Just make sure that you’ve done your research, guaranteed your finances, and considered all your options. At the end of the day, what’s important is that you’re not letting this crisis hold you back any more than it already has.

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