Generally speaking, residential property sales in the U.S. have declined during the pandemic. This is mainly due to the rise in unemployment, the need for social distancing and other safety measures. When it comes to prices, they’ve mostly stayed the same. However, much of this depends on the location of the property.

Homeowners who were in the process of selling their home when COVID-19 hit, were generally able to complete the transaction.

When the pandemic first started buyers were faced with the realization that lenders had raised their qualification requirements for mortgages. This practice extended to down payment assistance programs as well. In fact, lenders seemed to be changing their guidelines and requirements every few days.

It was like they were too scared to lend. Lenders would have a qualified buyer who looked like a great candidate, with a great credit score, a good job and everything else that’s typically needed, and lenders were still very reluctant to move forward. After a while, buyers who struggled to gain loan approval started being able to close as lenders began relaxing their requirements. Credit score requirements are now back where they were before COVID-19.

Homebuying During COVID

With safety guidelines easing across the country, life as we once knew it is starting to return for many. How will this impact your own homebuying goals?

Your first consideration when thinking about buying a home must be your employment status. If you are currently out of work, applying for a mortgage will likely be fruitless.

On the other hand, if you have job security, this may be the perfect time to get loan approval ahead of looking for the right house. Getting everything lined up in advance gives you an edge when you’re ready to make an offer.

Mortgage rates are now at historic lows, having been slashed by the Federal Reserve. So, if you have steady employment and enough money saved up for a down payment, this might be a great time to buy a home.

However, you must be prepared for the unknown. If this past year has taught us anything it is that you need to be on solid financial footing before planning a major purchase like a home. Get your budget organized with sufficient funds set aside for emergencies and a secure retirement.

Calculate how much you can afford for a down payment and what the closing costs will likely be. Ask yourself, is this home going to offer you long-term stability and if so, can you afford it? If the answer is yes, then start looking as that won’t cost you anything.

Even though the worst of the pandemic has subsided in most parts of the county, people are still social distancing and wearing masks inside. So, be prepared to comply with the sellers’ health and safety precautions when you attend Open Houses or private showings.

Although things are a little strange right now, you should get through the process with all the advances in technology and you may even be able to “virtually sign” on closing day.