The coronavirus outbreak has changed certain aspects of home buying. In some ways, it’s become more challenging. However, in many ways, it’s actually improved. Here are some of the differences you'll notice about purchasing a home in 2020 and how to prepare for them.
Qualifying credit score has risen for some lenders. Not a concern with most loan programs, but it's good to be aware of this change.
Minimum down payments are also increasing. Again, not applicable in most loan options.
Some areas have seen a slowing of available homes on the market. Fewer houses to choose from makes for a more competitive environment.
Record low rates have lured new buyers. Read below for information on beating competitive offers.
You've also likely seen a decline in open houses and a rise in virtual home tours.
Home inspections and appraisals. They may take longer to complete due to new safeguards.
Physical documentation for loan applications. Most (if not all) paperwork is eliminated, reducing backlogs and speeding up funding.
Remote closing opportunities are expanded. Ask us for details on how we've digitized the loan process for our borrowers.
Generally speaking, the minimum FICO score needed for a conventional loan was 620 before COVID --although federally-backed loans allow for much lower credit scores.
Post-pandemic and mainly in response to ambiguities in the market, several large lenders raised the minimum FICO requirement for new borrowers. Some lenders were also less flexible when it came to down payments under 20% of the purchase price.
What this means for you: Having your finances in order and getting in touch with a loan expert early on in the process is more important than ever. Ensure you get the most accurate information and have a plan for buying a home in 2020 by talking with a loan expert as soon as possible.
Certain areas in our community already experienced shortages in homes for sale as compared to home buyers. This was further exasperated homeowners pausing the sale of their homes due to the pandemic. When we combine this situation with the flood of new buyers fueled by record-low mortgage rates, you can see how the competition is more fierce than before.
What this means for you: Don't let competition keep you from your homebuying goals! Home prices have fallen in many areas --making it possible to buy a home in an area that would've been out of reach before the pandemic. Get prequalified as soon as possible, and confidently (and aggressively) make a bid on your dream home.
Navigating the real estate market is more challenging in 2020, but with a mortgage expert like us by your side, you'll be sure to stay in the loop with the best possible deal. Contact us today to get started
Proudly serving current and future homeowners in California and Arizona. We are a wholesale broker that partners with the top Lenders in the nation, passing the savings on to you!
Company NMLS: 1712689
8700 E Vista Bonita Dr #260
Scottsdale, AZ 85255
Phone: (800) 874-1233
Crest Mortgage, Inc. strives to ensure that its services are accessible to people with disabilities. Crest Mortgage, Inc. has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Crest Mortgage, Inc. makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows www.CrestLendingGroup.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Crest Mortgage, Inc. accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Crest Mortgage, Inc. continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Crest Mortgage, Inc. website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Crest Mortgage, Inc. website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: Info@CrestLendingGroup.com