Current Mortgage Rates: Richmond, VA
2.875% (2.938% APR) 30yrs
2.375% (2.381% APR) 15yrs
as of 01/25/21
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Is It A Good Time to Buy?

Is It A Good Time to Buy COVID 19 Web

Is It A Good Time to Buy?

Get the latest advice on benefits, strategy, and extra steps for buying a home during the COVID-19 pandemic.

With recent events around COVID-19, many homebuyers are asking if the real estate market is approachable at this time. If you have been planning on buying a home in 2020, but have put your plans on hold, our guide on the best steps to take right now can help you decide if it’s a good time for you to start shopping. We’ll give you the best advice available on whether you should hold tight or start shopping this summer.

Are you ready to buy a home? Read our guide!

A Window of Opportunity

It’s a buyer’s market—for some. The housing market is less active right now for multiple reasons, including fewer real estate viewing opportunities, market insecurities, and reduced spending. A survey from the National Association of Realtors found that 70% of respondents have seen a decline in buyer interest. That means that if you are living in a city that has a slowing housing market, you will likely see lower than expected prices on homes.

Competition is also slower in many places, which can create an opportunity to get a home at a lower value. If you are pre-approved below a home’s listing price, you may have the opportunity to make an offer and have it accepted. Plus, less competition means you are more likely to win a bid on a home. If you are a serious buyer with pre-approval for a mortgage, the housing market presents a huge opportunity right now.

Get pre-approval from RatePro Mortgage today!

Learn Your Options

There are fewer homes for sale, as sellers are weighing the cost and benefit of selling right now. This means that home competition could increase, but it hasn’t affected prices significantly in many places. Up to 66% of real estate agents saw a decrease in new listings.

This could mean that your market has less inventory, which may make it hard to find a home that meets your needs. However, it also means that current sellers are serious, meaning they may be flexible with purchase prices and closing agreements. You can expect to see a significant increase in new listings in the future when cautionary measures are lifted. This trend can also reduce prices, but could also provide more availability in the area that you want to buy.

Programs Are Still Available

FHA loans are still available to buyers that meet their requirements. If you were planning to purchase a home with one of these programs, rest assured that they are still accepting homebuyers.

However, due to the economic impact felt by COVID-19, lenders may have special requirements to get loan approval. Lenders are looking at long term financial stability and higher credit scores in an attempt to further protect the loan. Getting in contact with a lender will help you to understand if you can secure a loan right now.

Learn everything about FHA loans.

Shop with pre-approval

Because of the restrictions and cautionary measures with viewing homes during this time, many real estate agents are asking that homebuyers secure pre-approval before they begin the search in person. Because viewing homes right now can take some additional coordination on the agent’s side, it’s helpful to let them know where you are in the mortgage process. Plus, when you find a home that you love, you’ll be ready to make an offer immediately.

Learn why you should get pre-approved before you start shopping.

Lock-In Your Interest Rate

If you are pre-approved and ready to make an offer on a home, ask your mortgage lender about locking in an interest rate. Rates are low in many markets due to the reduction in home sales. By locking your rate, you’ll ensure that you get the best rate available at your time of closing.

Check out our blog on why interest rates change.

We’re Ready When You Are

Purchasing a home is a huge accomplishment and a big life decision. During this time, many factors can have an impact on our livelihoods, well-being, and goals. Shopping for a home now could be a huge opportunity in some markets, and we can help you to navigate this process with confidence and safety.

If you were prepared to buy a home in 2020, speak with RatePro Mortgage to learn about what options are available to you at this time. And always, stay safe, everyone!

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