The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus. The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.
One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year. According to John Burns Consulting:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”
Given this situation, if you’re thinking about buying a home this year, the best thing you can do right now is use this time to get pre-approved for a mortgage, which you can do from the comfort of your home. Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:
1. Gain a Competitive Advantage
Whether you looking at existing homes on the market or want to buy or build a new home, low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get. A seller or builder would much prefer to enter into a contract with a pre-approved buyer than one who isn’t because it gives them peace of mind that you’re serious about (and financially qualified for) buying a home.
2. Accelerate the Homebuying Process
Pre-approval can also speed-up the homebuying process so you can move faster when you’re ready to. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams. Whether you’re choosing a lot or a home, being pre-approved means when you find what you want, you can move ahead immediately before someone else has a chance.
Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. Let’s connect today to get the process started.