Covid-19 is dictating every aspect of the average American’s life. Everything from doing regular jobs, individual food habits, to taking important decisions has changed. Things are especially confusing in the real estate market. Should you jump on those Mason City Iowa homes for sale or wait until things settle down a bit?
Things have changed drastically in the real estate market during the pandemic. You can no longer assume anything with canceled open houses, volatile interest rates and wait times.
These tips should come in helpful if you can’t wait and decide to go ahead with the purchasing a new house.
- Beware of Volatile Mortgage Rates
The Federal Reserve has already lowered its rate twice this year amidst the widespread Coronavirus. You would assume that this would cause mortgage rates to automatically fall as is the case with savings accounts, credit cards, and other short-term debt/loans.
However, mortgages are considered long term loans that typically range from 15 to 30 years. They rely more on demand as compared to federal rates. There was a surge in refinancing application in early March when the rates were reduced.
In a typical situation, lenders would increase mortgage rates to slow down applications. However, in the current situation experts are left without a clue. Rates are constantly changing in these unprecedented times. It is important you remain flexible and open to rate changes.
- Don’t Delay Your Loan Application
The process of home buying is taking longer than usual. It is recommended that you get started with your lender early. In fact, you should apply for that home loan even before you go looking for Mason City Iowa homes for sale. You may have to wait a long time if you don’t get a jump on it soon.
Surge in refinancing applications is not the only reason for the delay. Most employees are required to work from their homes, which is slowing down their efficiency.
The coronavirus crisis has slowed things down every step of the way. For instance, physical appraisers are refusing from visiting properties until they are absolutely sure that nobody in the house is sick or placed under quarantine.
- Use Alternatives to Open Houses
A lot of companies have postponed or canceled tours and open houses in a bid to prevent the spread of the virus. Fortunately, there are several other ways to get a feel of a new property besides relying on online pictures. You can always request a digital tour.
There are several brokers and agents who would be more than happy to live chat while digitally walking you through the property. You can seek answers to all your questions in real time this way, like the kind of kitchen countertops or the flooring.
There are a few companies with access to advanced technology that are offering virtual tours. These are essentially scans of the entire house showcased as a 3-D model. You can walk through the property like you would in a video game. This technology was generally used by remote buyers but is now rampant with the ongoing social distancing norms.