BREAKING NEWS: Buying A Home During COVID-19 Pandemic Mortgage Crisis
We all know the COVID-19 coronavirus outbreak has affected the world in unimaginable ways.
- Some major industries such as tourism, retail, automotive, logistics, and even real estate are affected in unmeasurable ways
- In this blog, we will give a quick COVID-19 mortgage update as well as explain the process of buying a home during the strange and unpredictable times
In this article, we will discuss and cover Buying A Home During COVID-19 Pandemic Mortgage Crisis.
Update On Buying A Home During COVID-19 Pandemic Mortgage Crisis
A quick update surrounding mortgage guidelines.
- You may have heard of lenders and banking institutions raising their credit score requirements and other guidelines to make it more difficult to obtain a mortgage
- Yes, this is true
- We are experiencing numerous investors raise their credit score requirements
- The good news, as of today, Gustan Cho Associates still has a few outlets who do not have additional LENDER OVERLAYS
- Meaning we can still complete FHA mortgages with credit scores as low as 500 (with 10% down payment), VA mortgages without a credit score requirement, and manually underwrite mortgage loans
- If your current lender has announced some guideline changes that are affecting your qualifications, please call Mike Gracz on 630-659-7644
Gustan Cho Associates are still working seven days a week to assist our current and future clients.
Mortgage Process When Buying A Home During COVID-19 Pandemic Mortgage Crisis
The home buying process overall has not changed very much. Of course, there are a few minor hiccups due to the COVID-19 coronavirus outbreak. The home buying process will still start with a PRE-APPROVAL followed by you shopping for a home with your realtor.
To start the pre-approval process, gather the following information and give us a call:
- Last 60 Days Bank Statements – to source down payment
- Last 30 Days Pay Stubs
- Last Two Years W2’S
- Last Two Years Tax Returns
- Driver’s License
Once you find a home that is right for you and your family, you will then place an offer. There may be a negotiation. Back-and-forth. Once you achieve an executed signed contract, you will simply send that to your loan officer, sign electronically loan disclosures and start the mortgage process.
Impact During Mortgage Process When Buying A Home During COVID-19 Pandemic Crisis
The mortgage process will have a few minor hiccups during this COVID-19 coronavirus outbreak.
- We know that the majority of mortgage employees are working remotely
- Not just Gustan Cho Associates, but all of the underwriting, human resource department (for verification of employment), appraisers, closers, title companies, even some county recorders
- This can cause a delay in the mortgage process
- Our investors highly recommended asking for 45 days to close a home loan during these tough times
- Turn times and service-level agreements have begun to take longer than usual
- The appraisal process has been quite a struggle as many appraisers are not working during these tough times
- They may not be comfortable going into a stranger’s home
It is the small day to day changes the whole world is experiencing that are extending the mortgage approval process.
Importance Of Teamwork When Buying A Home During COVID-19 Housing Crisis
This being said, we do ask the patience of our current and future clientele. So far everybody has been very understanding and these changes have seemed to unite the American people. The more we can work together, the faster we can make the mortgage process but more importantly the faster we can get moving forward as a country.
Light At The End Of The Tunnel And Hopes To Return To Normalcy
As we seem to have a slight glimmer of hope that the next few weeks will flatten the curve of COVID-19 coronavirus, Americans are bracing themselves or one of the deadliest weeks in our modern history.
- This global pandemic has created havoc on all aspects of our economy and daily life
- With all the bad situations, we must look for some silver lining
- In my experience, I have seen neighbors helping neighbors, citizens actually practicing social distancing and an overall friendly vibe
- In my lifetime, I have seen the American people come together during the tragedy of 9/11, and I am very optimistic that we will do it again
Together we are strong enough to get past this COVID-19 coronavirus outbreak.
Unity During Pandemic Crisis Bringing Americans Together
An example of the American people coming together was demonstrated during the White House coronavirus task force briefing yesterday April 7th, 2020.
- MIKE PENCE reiterated the fact that states such as California are donating extra respirators to other states in need such as New York and Louisiana
- This shows the kindness and generosity of the American people
- As a whole country, not just their own state
- The small things like this that go a long way in uniting our nation
- By the sounds of it, we should have plenty of supplies to prepare for the peak in the COVID-19 coronavirus outbreak
- This is uplifting news for our healthcare workers and first responders who every single day, are on the front lines battling this invisible enemy
- Over the past few days, at 8 PM, residents are going outside and applauding/ cheering those who are first responders and in the health care service on a daily basis
- These individuals include police officers, EMTs, firefighters, nurses, doctors, pharmacists, food supply chain workers, truckers, our military, and more!
- If this is not happening in your neighborhood, make it a conscious effort
- It is nice to see the local citizens come together
For any general mortgage questions, please call Mike Gracz on 630-659-7644. As mentioned above, Gustan Cho Associates are all working from home. We are available seven days a week. If for any reason we don’t answer, please leave a message or shoot an email to firstname.lastname@example.org. We will keep you updated on any mortgage guideline changes as we continue to hear them. Please check out our YouTube CHANNEL to stay current on new mortgage announcements.
April 8, 2020 - 4 min read