COVID-19 Home Buying? What you need to Consider?
With the current uncertainty of our way of life that has come along with the Corona-virus pandemic, buying a home might not be something you are considering. Mortgage rates are at a historical low but, there are multiple factors that you should consider during this time. You could be quarantined in your current place of residence and starting to reevaluate your living conditions. Here are some things to consider before making your decision to buy a home.
Am I ready to Buy?
If you were thinking about purchasing a home before this pandemic, you have likely already asked yourself this question. Now you must evaluated how you have been impacted by the closures of non-essential businesses, schools and some government functions.
- Can I afford a mortgage?
- Simple, right? You want to make sure that you consider the monthly expenses of the mortgage, home owner insurance, property taxes and utilities.
- Do I have a down payment?
- You want to have at least 20% of the cost of the home although, there are ways to become a homeowner with less.
- What is my credit score?
- Having a perfect credit score is not required there are options but, to take advantage of the low rates. Try paying down some debt, contact credit agency to remove errors from your credit report, pay on time, and do not open new accounts if possible.
- Do I have financial security?
- If the Corona-Virus has created a financial hardship for you, better days are coming. In the meantime create new sources of income.
- How long will I stay?
- Buying a home is a big decision and a big commitment. Pick a home you wouldn’t mind living in for at least 3-5 years.
Take away
With all things considered, this pandemic should not scare you away from the opportunity to become a home owner. Partnering with a good realtor and mortgage company can help you make informed decision based on your needs.
