How Will COVID-19 Affect My Ability to Buy My First Home?

 Posted on March 05, 2020 in Real Estate

Homeownership is a primary part of the American dream for many people. Those who are planning to buy a house will often put months or years of preparation into this process, including saving money for a down payment, building good credit, and meeting the requirements to obtain a mortgage. Unfortunately, the COVID-19 pandemic has forced many people to delay these plans, and the fluctuating real estate market has caused some to wonder whether now is a good time to buy a home at all. Those who have the means to commit to this type of large transaction may be able to take advantage of certain benefits in the current market, but they should also be aware of pandemic-related issues that could affect them.

Buying a Home During COVID-19

One advantage that potential homeowners can realize during the pandemic is a low interest rate. The Federal Reserve has lowered these rates to boost the economy, and this means that home buyers may be able to obtain more affordable mortgages than they could before. However, many mortgage lenders are currently hesitant to offer new loans, since job losses or other economic issues may cause unexpected problems that could affect a homeowner’s ability to make ongoing payments. Those who are preparing to buy a home may want to work on building their credit to ensure that they can qualify for a mortgage.

The process of buying a home has also changed somewhat due to concerns about infections. In many cases, the opportunities to make in-person visits to a potential new home may be limited, and buyers may need to rely on virtual visits and videoconferencing with real estate agents. These restrictions may also affect home inspections, and buyers may be concerned about their ability to identify defects in a home that need to be repaired or other issues that may need to be addressed. 

While the home closing process is typically conducted in person so that a buyer can sign all of the necessary paperwork, this process may also be completed virtually while using electronic signatures and notarizations. Buyers should be sure to speak to their real estate attorney about what procedures will be followed during their home closing. A lawyer can also advise buyers about their options for handling concerns uncovered during a home inspection or issues that may have been missed if a complete home inspection could not be performed.

Contact a Waukegan Residential Real Estate Attorney

If you are planning to buy a home for the first time, Newland & Newland, LLP can make sure you properly address all legal issues during your transaction. We will help you understand your rights, and we will work to address any concerns you may have, ensuring that you will be able to embark on the journey of homeownership successfully. To schedule a free consultation with our Grayslake real estate lawyers, contact us at 847-549-0000.

Sources:

https://www.rockethomes.com/blog/home-buying/buy-sell-house-during-coronavirus

https://www.equifax.com/personal/education/covid-19/home-buying-during-pandemic/

https://time.com/nextadvisor/mortgages/covid-19-first-time-homebuyer/