Many of us wonder how to eliminate the uncertainty caused by the coronavirus pandemic when buying a house or refinancing the current mortgage. Coronavirus doesn’t prevent you from becoming a homeowner, while it is obvious that caused some changes.
Here are the most important changes in home buying process due to the Coronavirus pandemic in 2020:
- Many of the potential homebuyers and home sellers put their decisions on hold during this spring. This indicates that there are fewer homes to choose in the real estate market.
- The insurance of mortgage loans has been decreased among some lenders. So, the homebuyers can borrow from a few of lenders at the same time.
- Your credit score has become more important in this period. Many of lenders increase credit score requirements. (Your credit score should be at least 700 to buy).
- Minimum down payments are rising by approximately 20%.
- The highest mortgage rates have been seen on January for 2020. Then they started to fall, and current mortgage rates are nearly 3%.
Here are the most important changes about refinancing the mortgage due to the Coronavirus pandemic in 2020:
- Coronavirus pandemic has complicated refinancing your mortgage, because the lenders are busy with customers’ high loan demands and other issues.
- It can be an opportunity to refinance a mortgage, since mortgage rates are falling up to around 3% recently. If your credit score improved compared to the beginning, then you can demand from the lender to revise the mortgage interest rate, payment schedule, and terms of a previous loan.
If you experience financial hardship because of coronavirus pandemic, you have the right to request and receive a forbearance for up to 6 months. With a mortgage forbearance agreement, you can request from the lender to be reduced or even delay mortgage payments and not to be initiated a foreclosure during the forbearance period. Therefore, mortgage forbearance may be an opportunity for people who have difficulty paying their mortgage.