What to Expect When Purchasing a Home in 2021
COVID-19 has disrupted our daily life, forcing many people to quarantine for months on end… and it’s not over yet! Until a vaccine substantially slows the pandemic, home buyers will continue to navigate a socially distanced home buying process.
What does this mean for buying a home in 2021?
Sellers and Buyers will continue to rely heavily on Technology
Over the past several months, everyone involved in the home buying process- from real estate agents to lenders, buyers, sellers, home inspectors, etc.- have adapted to the pandemic by completing real estate transactions in a socially distanced manner. This year, not much is expected to change. Therefore, buyers and sellers should prepare for virtual home tours, e-closings, small open houses only for qualified, serious buyers, and, you guessed it… more Zoom meetings! Those working in the real estate industry will continue to do whatever is necessary for all parties to feel safe and confident from start to finish of the homebuying process.
While social-distancing regulations vary by state, it is widely expected that a successful rollout of COVID-19 vaccinations will lessen the restrictions in all 50 states as the year progresses. Nevertheless, some of the online tools developed over the course of the pandemic are expected to stay in place long after its passing.
Get your finances in tip-top shape
As always, it’s important to be aware of your credit score and to take necessary steps towards improvement if need be.
Here are a few ideas to keep your finances in good standing:
- Don’t apply for new credit.
- Don’t default on credit card and loan payments.
- Avoid large purchases.
- Avoid making large deposits to your bank account.
In addition to maintaining a solid credit score and low debt-to-income ratio, a mortgage lender will also review work history and bank statements to determine whether or not a home buyer truly has the resources to maintain a mortgage payment.
Read our blog titled Mistakes to Avoid During the Mortgage Approval Process to learn more about the importance of maintaining a good credit score.
Mortgage rates are expected to stay low
According to NerdWallet, the rate for a 30-year mortgage in 2021 is expected to average 3.075% down from 3.125% in 2020. While mortgage rates are ever-changing and influenced by several factors, these numbers are still historically low compared to prior years.
Buying a home during any year is bound to take lots of time and careful planning, and even more so as we continue to navigate the COVID-19 pandemic.
If you’re searching for a trusted mortgage provider, contact the experienced loan officers at GoPrime Mortgage! We’ll answer your questions and guide you through the home buying process from pre-approval to closing.