So far, 2020 has been a strange year for home purchases. The interest rates are low, resulting in soaring mortgage applications. But at the same time, states like Connecticut have to adopt social distancing measures to begin flattening the curve until a cure is developed.
On the one hand, taking out a mortgage in Guilford, Madison, Branford, or Seymour has become more affordable. On the other hand, it is practically impossible to shop for a property the traditional way.
If you could no longer wait for the current public health crisis to be over before you buy a house, below are some pointers:
Book a Digital Tour
Since it is your civic duty to stay home and go out only when it is necessary, you should not attend open houses and meet with prospective sellers for the time being. Fortunately, it is not the sole way to inspect a property you intend to purchase.
The bright side of the current pandemic is that it is happening in the digital age. Many of the things you previously have to do in person could now be done via an Internet-connected device.
Find a realtor or real estate agent who is willing to give you a digital tour of your potential next residence. The real estate industry has been disrupted by technology for quite some time now, so you should be able to find a representative of a seller capable of giving you an interactive digital experience to explore the property for sale in the comfort of your home.
Do Not Procrastinate
If you have decided to pull the trigger on your purchase, shop for loans with a sense of urgency. Understand that mortgage companies do not operate normally. Although their employees can finish tasks from home, expect the process to take longer than usual.
Due to relatively high mortgage demand, though, you might have to wait in line. Many mortgage companies these days are slammed with work because the flow of incoming business is greater than usual.
Lock an Attractive Interest Rate
During times of uncertainty, mortgage rates could become volatile. As is the case now. Interest rates are changing more frequently as markets adjust to the developments in the outbreak and government policies to help keep the economy afloat. In this year alone, the Federal Reserve has made two rate decreases.
Considering that one percentage point could translate to significant savings over the long term, you might be tempted to wait for mortgage rates to slide further. The problem is that nobody knows for sure when they will stabilize. You could miss out on an opportunity to snag a favorable rate if you put off your application for too long.
When you find an interest rate that is much favorable than you initially thought you would get, lock it in. This way, you will not financially suffer if prices suddenly go up again.
The effects of the current pandemic have dramatically altered the way we all live. Strange times require creative measures to adapt, so learn how to play the new, albeit temporary, rules of home buying to reach your homeownership goal with little stress.