Homebuying in a pandemic


You may have been thinking about buying a home but given all the economic uncertainty with the COVID-19 crisis you may now be second guessing yourself and wondering if you should wait until things settle down somewhat. Some second thought is probably a good idea at this time.

There is uncertainty in the housing market as the full impact on the economy has not yet been determined. Many homes are being taken off the market and the number of sales are dropping.

The answer to whether you should buy now or wait until later is not a simple one, as people still need to sell and buy homes for many reasons. All parties involved in the real estate industry are making adjustments to assist clients in this new reality.

Mortgage brokers can complete the entire mortgage process for you virtually. There is no need to meet in person.

Realtors are making homes available for viewing through virtual tours or putting safe practices in place if a buyer needs to view a property in person. Lawyers can now do virtual signings for real estate transactions and mortgage documents. As well as lenders, appraisers and home inspectors making the necessary changes in order to still assist clients.

All of this is taking more time right now but with patience and the right team on your side, homes are still being bought and sold although not as many right now. 

It’s hard not to ignore the external factors but the decision to buy a home at any time should be based on your current personal circumstances. Is it a good time for you to buy? What is your current employment status and are you financially prepared to purchase right now?

Here are some questions to ask yourself that might assist with your decision during the pandemic.

  • Are you currently still employed?
  • Is there the possibility that you might lose your job or face a temporary lay-off as a result of COVID-19?
  • Have you saved enough funds for the down payment and closing costs?
  • Will buying a home now put you in a better or worse financial situation?
  • Do you have a plan in place in case you contract the virus and are sick and unable to work?
  • Are you worried that the real estate market might crash in the near future?
  • Are you feeling pressure to buy right now because interest rates are low?

If you have a plan in place to cover any potential challenges, then moving forward with a home purchase now may be right for you now.

And just like any other time, a mortgage preapproval is highly recommended before you move forward with your house hunting. The lenders are extremely busy right now along with some of the lending guidelines being adjusted due to the higher risk right now, so this is the prudent first step to prevent any delays or disappointments.

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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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