Borrowers and home buyers have a lot of questions about mortgages during quarantine. It may feel like the whole world has stopped. But that isn’t the case at all. In fact, there is a LOT going on in the real estate industry today.
I sat down with senior mortgage advisor, Derek Harman to get his perspective on how the coronavirus has changed home buying today. How are mortgages during quarantine being affected?
Is it a good time to buy a home right now?
The short answer is yes! People will always need to move. Even during our current quarantine there are people selling their homes.
Of course there are not as many homes as normal for the spring market. Inventory is low. That creates a great opportunity for competition between potential homebuyers.
I’m making sure my clients are set up so they are prepared for that possibility. It’s important to make sure borrowers can bring their best offer to the table so they are the winning offer.
What do you see happening with interest rates in the near future?
Interest rates are very favorable right now. There is some up and down in the market, so I recommend that borrowers get all of their information together as soon as possible, especially for a refinance. That way they’re ready to lock in the best possible rate before the rates change.
My clients get a list of all the documents they need so they’re ready quickly.
Should I refinance my mortgage during quarantine?
Anytime you have an opportunity to save money on one of the largest financial investments in your life, you should do it!
Now is the time to contact your mortgage advisor, if they haven’t already called you. They will be able to review your current mortgage and see how you can save money. Being smart and saving money right now might make a world of difference in our current economy. I like my clients to be prepared.
Of all the quarantine FAQs I’m hearing, this is the one that I hope everyone is taking action on.
Why don’t all mortgage products offer the same low rates right now?
There isn’t a pat answer for this. I’m answering questions like these every day, and the answers are changing. It’s important that my clients have a conversation with me before they spend time looking for homes that aren’t in their price range. I want to make sure borrowers are set up for success, so my advice changes case by case.
So what is the first step for people who want to buy a home right now?
Thankfully my answer to that hasn’t changed! The first step for mortgages during quarantine still means start with a call or email to your mortgage advisor.
Make sure they set you up for success. For refinances, you don’t want to miss out on the right interest rates. Find out what paperwork you need and send it in ASAP so you don’t miss an opportunity.
For home buyers, find out how much home you can afford so you don’t get outbid by someone else with the house you have your eye on. And you don’t want to be wasting time or taking chances with your health looking at a home that isn’t in your price range.
For more information about mortgages and to get started with your refinance or home buyer journey, check out the links below.