Buying a new home can be one of the best things that you can do in your life – but it can also be one of the most nerve wracking. This is particularly true if you are trying to get approved for a mortgage and you have never bought a home before. Now, this can be even scarier now that financial futures are unsure and banks are more reluctant than ever to lend money.
However, you have to remember that people buy new homes all the time, and housing markets have not crashed during this recession. Many people are actually taking advantage of lower rates to buy their new homes. If you’re able to lock in the current rates, this can actually be one of the best times to buy a home and can set you up for financial security for years to come.
To learn more about some of the special deals you can take advantage of during the COVID-19 pandemic in order to purchase a new home, keep on reading.
Borrowing Against Your 401(k) For Your Down Payment
For first-time home buyers, in particular, the down payment for a house is the most complicated part. Saving enough money for your down payment can be daunting, even if you know you’d easily be able to make your mortgage payments based on the monthly rent you’re already paying.
Right now, you are actually able to borrow against your 401(k) penalty-free, thanks to provisions set by the CARES act in order to stimulate the housing market. If you have money in your 401(k), taking money out of it in order to buy a house is a great way to have more money, later on, to contribute to your retirement account
COVID-19 – Getting Approval For A Mortgage
In order to get approved for a mortgage, there are a few proactive measures you can take. For instance, you need to get your credit score in order so that you can be eligible for a home loan. Using your stimulus checks in order to pay off old debts is a great way to do this.
You can also use your extra time at home to start a side-hustle in order to pay off your debts. Utilizing your extra free-time in productive ways while we wait for things to begin to reopen is a great way to improve your financial security and get yourself in a better financial position after COVID-19 than you were in before.
How To Shop For Homes During COVID-19
Once you’re approved for a mortgage, it’s time to start looking for your new home. While you won’t be able to drive around looking for open houses, Realtors are considered social workers and you will be able to shop for a home.
While you are doing this, please respect social distancing and be sure not to bring along extra people during the process out of respect to your real estate agent and the current homeowners. Some real estate agents may even be able to do online walk-throughs, so you can shop for your new home right from the comfort of your couch.
No Comments