What you need to know about mortgages during (and after) COVID-19

What you need to know about mortgages during (and after) COVID-19

As experts and advisers, real estate agents have always played an important role for homebuyers. But it’s clear that during the coronavirus era, they have even more responsibility to educate clients on what’s happening in today’s market

The COVID-19 pandemic has caused several negative ripple effects across the U.S. including a huge increase of Americans asking to delay mortgage payments. With mortgages, the rate volatility is mostly constrained to non-conforming loans such as jumbo loans, high-balance conforming loans and investment property loans. For conforming borrowers, rates are still historically low.

How COVID-19 changed the mortgage market

Lenders are increasingly moving away from or raising rates on more risky loans like jumbo loans, high-balance conforming loans and investment property loans.

But since lenders don’t face the same liquidity risk with conforming loans, rates on conforming loans under $510,400 are still competitively priced. Some of the other significant reasons for volatility and disruption include:

·          Lenders are raising qualification thresholds from mortgages including jumbo loans, high-balance conforming loans and investment property loans. This means that, generally speaking, borrowers will need better-than-usual credit scores (above 680), a steady job, more cash on hand and more willingness to close a deal on short notice.  Mortgage application volume is high across the U.S. With many people trying to obtain mortgages and bank workers adjusting to working from home, banks have struggled to keep up with demand. This means the buying process and getting a mortgage approved is taking longer than usual.

Preparing prospective homebuyers

The process of getting a mortgage is emotional and stressful . Here are a few examples.

·         What kind of loan will they need — conventional, FHA or VA?

·         What sort of job security do they have?

·         How good is their credit score, and will it likely remain steady during the buying process?

·         How quickly can they decide to close on a purchase given the current environment and fluctuations?

·         Have they gathered all the required financial information (pay stubs, credit reports, W-2, bank statements, etc.) before starting paperwork?

These sorts of questions can help clients think about obtaining a mortgage while COVID-19 causes uncertainty for so many people and businesses.

Post-COVID-19 planning

In all likelihood, the coronavirus crisis will be with us ,it’s prudent to set expectations and explain to buyers that getting a mortgage during the coronavirus can be a little challenging.  For some people — those with safe jobs and savings who are seeking a loan within the conforming limit — rates should remain low. However, there may be more documentation needed than usual.  Although homebuying now might be technically feasible for many buyers, agents should ensure their clients are entering the process with their eyes open. And if buyers do want to go through the process now, they need the ability to close quickly on a property and adjust to the quirks of pandemic buying. 

Mortgage rates ticked down just slightly this week and remain at all-time lows. Rates have consistently trended downward for the last two weeks, but the daily movements have been very modest, despite a slew of economic data series that have seen record one-month improvements.

The reality is that these monthly gains were largely expected – and likely already “priced-in” – and, despite the improvements, the economic recovery still has a long way to go. What’s more, the recent surge in coronavirus case volumes across the country has called into the question the viability of economic recovery. As a result, investors appear to be hanging tight, waiting for surprising data and/or evidence of our society’s ability to function – or not function – amid rising COVID-19 case volumes before acting in a way that would force mortgage rates to respond.

Absent this information, it’s difficult to call where rates are likely to go from here. Positive news could easily jolt rates back upward, making these record-low levels a fond memory, but the gradual reduction of rates could also continue if new developments disappoint. Whichever way they go, mortgage rate movements will be driven by the spread of the virus and our ability to live with it.

With that being said, remember 1% saving in RATE OF INTEREST, can save you approx $12000 so take your pick wisely. RATES ARE LOWEST AND THIS TIME WONT COME

Posted on July 3, 2020 at 9:54 pm
Anil Aggarwal | Category: Finance | Tagged ,

My Personal Tips to protect you and your family from Corona virus

Hi, I am Anil Aggarwal, and my business makes me travel, meet clients , visit properties so taken some steps to protect me, my family and my future.. Listing for your review

Spread of COVID-19 Fever, cough, and difficulty breathing are the most common symptoms. See what the CDC recommends for those who think they may have been exposed.

Now some tips that I am using

    1. With #corona , For medical care, There is a #life #insurance policy Called IUL (Click to watch video)that provide 2% long term care (Sorry changed for US citizens only recently. Read MORE ) if required and good part is, policy pays for all medical hospital and care bills if any daily activity person can’t do. Premiums you pay , go towards investment and give growth to max cap of 15% and bottom cap is .75% so if market dips, your losses stay till .75% . Me and wife has it So if you like or have suggestion then Ping me and will connect virtually to right person . Read more about this at  bit.ly/iulltc 
    2. Not to panic but Keep silver/gold coins as easy to carry if banks collapse. Coins before 1964 has silver .Buy Gold Online at dealer cost – Golden Eagle Coins or Buy Gold Coins http://bit.ly/2W46K4v
    3. There is a website that sells immunity capsules for less http://tinyurl.com/r272dqh. I guess, strong immunity should help.
    4. And yes, buy mask/Soaps/and napkins at amazon. https://amzn.to/2vjTmys
    5. Just saw video of ladies fighting for tissue paper. Not sure why people waste money for paper. Use Bidet and save paper , money and be healthy.. https://amzn.to/3cRoOov
    6. Last, my mother left me some hankerchifts when we went back to India.. Now I see power of those and as I am using them , I say thanks to her and so to Corona for bringing my India back to me.
    7. I strongly feel that Corono virus will vanish as it came. India has many gods so we need one god for this and this god should remove this corona asap. There are 5 companies that are working day /night to make drugs. If anyone interested, then click here to learn more.

Deals

Any suggestions or added tips then please share.

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Posted on March 12, 2020 at 4:35 am
Anil Aggarwal | Category: About Anil Aggarwal | Tagged ,