Homebuying And Mortgage Process During Coronavirus Pandemic

The Homebuying And Mortgage Process during the coronavirus pandemic is more difficult than it was used to be.

• The coronavirus pandemic has turned the mortgage market upside down
• Although mortgage rates hit an all-time historic low, borrowers with under 680 credit scores are encountering hurdles when qualifying for a mortgage
• Most lenders imposed overlays on credit scores by increasing minimum credit score requirements
• For example, many lenders who had minimum credit score requirements of 580 FICO on FHA loans have increased it to 660 to 680 FICO
• Lenders also raised loan level pricing adjustments (LLPA) on borrowers with under 680 credit scores
• Mortgage rates are higher for borrowers with under 680 credit scores
• The reason lenders have increased credit scores and imposed overlays is due to liquidity issues on the secondary market

In this breaking news, we will discuss and cover the Homebuying And Mortgage Process During Coronavirus Pandemic.

Challenges In The Homebuying And Mortgage Process During The Coronavirus Pandemic

The Home Buying And Mortgage Process During COVID-19 Pandemic is possible. The mortgage business is considered an essential business. All essential businesses are allowed to remain open during the pandemic crisis. Michael Gracz of Gustan Cho Associates has been having record weeks during the pandemic closing loans.

• Lenders imposed higher credit score requirements on government loans
• Lenders also jacked up mortgage rates for borrowers with under 680 credit scores
• Almost all borrowers with under 680 credit scores are now being charged discount points
• For higher credit score borrowers, mortgage rates and terms are still great
• However, many lenders have stopped doing loans for borrowers with under 640 credit scores

Homebuying And Mortgage Process On Unique Loan Programs

Homebuying And Mortgage Process on Non-QM loans have been halted.

• Non-QM lenders have halted all non-QM loans until further notice
• Many non-QM lenders have gone out of business
• One of the most popular loan programs at Gustan Cho Associates was the self-employed bank statement program with no income tax required
• Gustan Cho Associates expects the resurgence of non-QM mortgages in the coming weeks
• Many lenders stopped doing manual underwriting on FHA and VA loans until further notice
• Others suspended doing FHA 203k loans
• Most lenders have also suspended Jumbo loans during the coronavirus economic crisis until further notice
• Specialty loan programs such as the down payment assistance loan programs and one-time construction loans have been halted until the mortgage markets stabilize

The Housing Market And Home Showings During The Coronavirus Economic Crisis

The once 2020 strong housing market has been put on hold by many homebuyers. Many homebuyers with executed real estate purchase contracts canceled until the economy are back in order. Many fear of losing their jobs and decided to put a home purchase on hold. However, for those homebuyers needing to purchase a home during the coronavirus pandemic, it is still possible to tour homes. Realtors are offering video conferencing options to abide by the social distancing recommendations by experts. Many buyers and sellers utilize the virtual home tours.

Avoid Physical Contact As Much As Possible

Mortgage and real estate professionals have implemented having the least contact among people during the home buying process. Title companies have implements e-signing, e-closing, and mobile notary services for home closings. Lenders do not have to have contact with borrowers. Everything is electronic. Docs are sent to the title companies. Funds are wired. The social distancing guidelines are implemented and in full force during the homebuying and mortgage process. For more information about this topic and/or other mortgage-related topics, please contact us at Gustan Cho Associates Mortgage Group at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.