Uncertainty, anxiety, stress, fear and many other emotions are being felt all around the world and much of it is out of our control. However, in the midst of crisis, there is always a silver lining and that is what we want to focus on. The rapid spread of COVID-19 can be compared to earlier economic recessions in previous years, but this is different. This pandemic is in fact causing an economic slowdown, but the good news is, home values have actually increased in 3 of the last 5 U.S. recessions and decreased by less than 2% in the 4th. All things considered, an economic slowdown does not equal a housing crisis, and this will not be a repeat of 2008.
Experts are saying pandemics, such as this one, create a theme. Our economy takes a hit but makes a quick, sharp rebound with little damage to home prices.
If you are considering buying a home this year, getting pre-approved for a mortgage is the best thing you can do. This can be done from the comfort of your living room and will allow you an advantage when it comes time to buy. As the world regains normality within the next several months, if you have an understanding of what you can afford then you will proceed with confidence as you take the next steps toward homeownership:
- Gain a competitive advantage: As we have seen in recent months, the housing inventory is low, and the competition grows as there becomes an abundance of buyers. Getting pre-approved for a mortgage will resonate well with homeowners because it will show how serious you are about buying their home. Help yourself stand out in the eye of the seller!
- Accelerate the homebuying process: Getting pre-approved now will prepare you when actively searching for your dream home. Being this prepared will eliminate any hindrances in the process by the time you come across “the one”.