Is It Wise To Buy A Home In 2020?

2020 has been anything but predictable and making a big financial move seems scarier when the world is in disarray. Is it even wise to buy a new home this year?

The short answer is yes. If you were planning on buying a home this year go for it! If your employment is stable and you have been saving and working at your credit score there is nothing in your way from getting your dream home.

Despite the chaos in the world the home-buying market is relatively stable if you keep a few things in mind.

There May Be Less To Look At

At the start of the COVID pandemic in March sellers quickly pulled their homes from the market because they, like all of us, were stuck there. In a survey by the National Association of Realtors 57 percent of real estate agents say they saw sellers delay listing their homes because of the pandemic.

Durning the summer, however, listings began to rise once again but they may not be at the level they were this time last year. This is also a very regional issue and will depend on where you are looking to buy. When people fled cities in March apartment listings skyrocketed but home listings fell as people were looking to get out of populated urban centers. Do a little research on your area to see what is out there!

Your Numbers Need To Look Good

In reaction to the pandemic many lenders have raised the criteria for qualifying for a mortgage. Lenders are now looking for a credit score of at least 700 and a 20 percent downpayment, which may not be doable for everyone.

If your credit score is a little low you don’t have to panic! Consult a credit expert (like us!) to go through your credit report and clean it up to get the number where it needs to be.

Pre-approval will also be crucial this year.

The Process Will Look Different

If you are proceeding with buying a home the process itself will look a lot different. You can expect things like virtual tours, virtual consultations and you may even sign for the home virtually! You may get a lot less face-to-face time with your real estate agent but that’s okay! Digital consultations and phone calls get the job done. You can get your face time when you see the home in person and when they finally hand you the keys!

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