While the global COVID-19 outbreak has changed the way we go about our everyday lives, the good news is that the real estate business is finding ways to navigate the restrictions set in place because of the pandemic.
If your goal is to buy a home this year, expect to do so under markedly different circumstances. Here’s an overview of what to expect:
Now is a good time to take advantage of low mortgage rates
The Mortgage Bankers Association pegged the national mortgage rate at a record low 3.14% for the week ending July 31, 2020. These favorable rates provide a serious incentive for people to buy homes despite the pandemic. In fact, around the Fourth of July holiday, lenders saw 33% more home loan applications compared to the same time last year.
But be ready for more stringent loan approval requirements
Expecting the increase in loan applications resulting from the plummeting interest rates, lending companies are protecting themselves by implementing stricter approval standards. Because of this, prepare to shell out up to a 20% down payment, or to present a credit score of at least 700 if you want to secure a mortgage with the best available terms.
The technology and tools for virtual home searches are already available
Digital technology is one of the key reasons why the real estate industry has so far been able to endure the worst disruptions of the pandemic. Thanks to video calling apps, 3D-mapping cameras, and drone footage, home tours have transitioned into the virtual space.
The internet has also enabled processes like title reviews and document signing to be carried out remotely. The parties involved don’t have to meet face to face anymore to complete these required steps.
Review seller disclosures more carefully than ever
Buyers should be more careful with how they assess their chosen listings under current circumstances, however. Opportunities to scrutinize every inch of the property may be limited in a virtual home tour, compared to a physical visit. Remember to secure a complete and accurate property disclosure from the seller and review every detail closely, preferably with the assistance of your real estate agent.
You can buy a house with confidence when you work with a local real estate expert
Look for an established and reputable La Quinta, CA real estate professional to guide your homebuying journey. Their experience and expertise will give you greater peace of mind as you make important decisions amidst the stress of the evolving COVID-19 situation.
With an experienced and trusted agent by your side, not only will it be easier to find the perfect home to match your needs and preferences, but you will also get a skilled negotiator and a reliable consultant who can address your every question and concern.
If you’re looking for luxurious country club homes for sale in La Quinta, CA, you chose an excellent place to start. Let me, Kathleen O’Keefe Galigher, show you the finest listings available, based on your most important needs and interests. Call 760.567.7822 or leave me a note here today.