Circumstances have drastically changed for us after the outbreak of the corona pandemic. A list of do’s and don’ts have attached to everything we do. Home buying is not an exception to this, and there are varied conditions that you should consider while making a big decision.
A guide here can explain in detail about the conditions and how to tackle if you are buying a home during corona.
The house should have a low-risk zone on corona meter
It has become a prime cause for all of us, as this factor can have a long-term impact. Certain locations are not very prone to corona, while some are under the red zone. It is of utmost importance that you explore the deepest information of the property market and find the safest location.
- Talk to the local agents but do not rely on them too much, as in the greed to get their commission, they may misguide you.
- Talk to any known person (if any) in the desired location and gather the necessary information.
- Of course, the Government sources are also reliable and provide detailed information about the latest condition.
Once you are sure that the location is safe, property viewing can make you even more confident and confirmed.
House prices are low but do not let this fact make you buy ANY home
The most prevalent thing in the property market after the coronavirus is the low prices of property. The options are numerous for the buyers because the sellers have fewer reasons to negotiate due to the pandemic.
As a homebuyer for sure, almost every day, you come across with great deals of ‘ready to buy’ houses. After all, the market is down, and the prices are low too. In such conditions, the natural human tendency or to be precise, the buyer tendency drives you towards the choice of the lowest price.
You may find a house with a stunningly low price but in the greed of saving money, do not forget the other important factors.
- In the disguise of low price, the seller may try to sell a house with a weak structure. Always arrange the house survey if you want to consider the property seriously. Do not think that the valuation by the lender will reveal the truth because valuation is majorly an inspected of the property value in the market.
- Properties on low prices but in poor health are also difficult to qualify for mortgage valuation. Think of the long-term impact of property buying and your goals that demand attention to your current actions for the big purchase.
Your final selection should always be based on the quality of the house and not on the price factor only.
Find out the LTV that you can qualify for
After corona, the mortgage attainment has become a bit difficult task. The drained financial capacities, lost jobs, uncertain future conditions, all made a strong team to cause big trouble. As a response to this risk, the mortgage providers switched on their alert alarm in the form of lower LTV.
Some lenders are back with the higher LTV choices of up to 90%. However, the strict rules of income assessment have made the approval game even more difficult. In a recent decision, the big lenders like HSBC have announced that they will not consider the income of those who are on furlough. Besides, for the applicants of getting a mortgage with bad credit mortgage, the challenge is bigger than ever.
- Hire a broker and find out the most affordable deal according to your financial conditions. After all, you have to arrange for the deposit too. If you are clear about the higher LTV rate you can qualify for, the arrangement of funds can become easy.
- Play safe through a pre-approved mortgage. It gives the idea of how far you can go in the property buying and approximately how much will be backed-up by the mortgage. Explore the maximum number of options, and for broker services, one precious advice is, hire the one with no fee. Such broking companies are easy to replace if you are not satisfied with their services.
CONCLUSION that gives a workable idea to START home buying
After reading the above information, it is perhaps easier for you now to outline your possible home buying experience. However, one important suggestion/idea here is, give your home buying decision a little bit of time. The real estate industry is contradictory now because if the house prices are low, then the mortgage is expensive due to lower LTV.
Before you rush to buy a home, try to predict the best time when you can buy with a balance on both the aspect. Besides the other factors like career, house location preference should also be magnified under the glass of corona after effects. What to say?? ALL THE BEST!