It’s a question we’ve received time and again since the COVID-19 pandemic began: Is now a good time to get a home loan or mortgage? Unfortunately, there’s no one, single answer that applies to everyone! Every potential borrower has a different set of circumstances, including credit score, financial assets, income, and other factors. For most people, however, the experts at ZeusLending would say yes, now is a great time to get a loan! Here’s why:
Lenders are still lending money during the pandemic, and borrowers are still buying homes and investment properties. For many borrowers, interest rates are quite low as the economy struggles under the weight of the crisis. Perhaps counterintuitively, the demand for homes and property has not dipped a bit. For many, it has proven to be relatively easy to qualify for an affordable loan in 2020 thanks to the influx of deals and properties purchased during the pandemic. The number of people seeking out a great deal has increased competition not only for homebuyers, but for lenders as well. That competition results in great terms for borrowers!
Or, at least, borrowers with great credit are receiving terrific rates. During the pandemic, some lenders are being very careful to closely examine borrower’s credit histories. Due to the uncertainty regarding the future that the pandemic has caused, banks are tightening up on lending to homebuyers who are credit-challenged. The market instability caused by COVID-19 and the higher risks that instability poses make lenders a little more cautious.
For example, if lenders find that you have several 30-days-late payment charges on a mortgage, that may leave them with the impression that you are not responsible or financially fit to pay back a loan. It’s a red flag when a borrower has a history of not paying on time—or not at all. If you have red flags such as this on your credit report, it may be wise to consult a credit counselor on your options.
Another factor many lenders may scrutinize during the pandemic is a homebuyer’s income. Verification of employment will likely weigh heavily in determining the likelihood of a borrower’s employment continuing. Borrowers need to make sure all their income is accounted for and will be reflected in the verification of employment.
Be prepared to strategize the best approach for you: If you need non-traditional lending, having a loan officer and mortgage company that is able to customize solutions for you and your specific scenario is key. Innovative lending solutions are ZeusLending’s specialty! Because we offer so many different loan products, our borrowers have more available options to prove their ability to repay.
If you’re ready to determine the best, most affordable home loan option for you, contact us today. Our helpful loan officers are standing by to offer a free consultation on your needs and available opportunities.