Can I Buy a House During the COVID-19 Pandemic?
- Absolutely! In fact, as long as you are able to afford a home, then we highly recommend purchasing during this time. It’s an amazing opportunity to negotiate for the home of your dreams! Keep in mind, there may be some extra safety precautions taken while house hunting.
Are there any new guidelines with the loan process because of COVID-19?
- Yes. We now conduct verification of employment much more frequently throughout the process due to the massive rise in the nation’s unemployment rate. Verifications can occur up to 5+ times during your loan process (depending on the type of loan) to ensure you are still employed, and your salary is adequately accounted for.
Have Credit Score Requirements Changed?
- Yes. There are additional requirements for clients with FICO scores below 700, and clients with debt-to-income ratios (DTI) above certain thresholds. The #1 thing that can help your situation if you happen to have a lower FICO score is to have verifiable assets in a checking, savings or other account.
If I am in forbearance on an investment property, can I refinance a different property?
- No. If you are in any type of forbearance, we will not process or approve a loan for you. We do not process loans for any client that is in forbearance or has considered forbearance within 6 months.
How can I protect my credit score during Covid-19?
- Simply put, keep making your payments. There is a lot of conflicting information going on during this uncertain time, and by accepting a payment arrangement or anything similar, you run the risk of having a late payment showing up on your credit report. Even if the payment is reported in error, we can only act on what the credit report states. We can’t omit a negative item from a credit report until the credit bureau corrects the item. That could take months.
What if I am laid off, furloughed, or experience an income reduction during the process?
- LET US KNOW! We do our best to help every client should one of these scenarios happen as long as the client lets us know immediately. If there is an issue with income and we are not notified prior to discovery, then we are much more likely to issue a loan denial. Furthermore, not disclosing material information in the process of obtaining a loan is a crime.
How can I shop for a home during Covid-19?
- With social distancing, shopping for a home may look a little different. Talk to your real estate agent about procedures in your market. During a showing, you may be asked to wear gloves and booties over your shoes, the real estate agent may be the only one allowed to touch doorknobs during the tour, etc. Real estate agents are currently thoroughly disinfecting before and after each showing. Additionally, tours may be conducted digitally.