Home Buying in an Uncertain Economy
Things have changed rather drastically in 2020. You might be thinking about buying a home, but you’re not sure what to expect.
The economy is uncertain right now. It could come roaring back or it could go into a recession. Only time will tell.
If you’re planning to buy a home, or even just thinking about it, here are some of the things you should know about home buying in an uncertain economy.
Understand Some Changes
Home buying isn’t the same as it was earlier this year. Things have changed due to coronavirus and other factors. A few things that have changed include:
ï‚· You will likely need a higher credit score
ï‚· Down payment minimums are going up
ï‚· Some lenders may not issue a loan, so be prepared to shop around
Getting approved for a home loan isn’t the same, so be prepared. Make sure you know your credit score and you might need a higher down payment or a lower home price to make home-buying work.
A Good Real Estate Agent is Vital
During a normal economy, a good real estate agent is important, but during an uncertain economy, the right agent can really save you from catastrophe. Your agent will help protect you by ensuring you get the right inspections and know what you’re buying. They can also help you navigate the home buying process, which is likely going to be different.
Get Preapproved, Still
Home buying during an uncertain economy still means you should get preapproved before you start shopping. Don’t start looking for homes without knowing you can buy. The last thing you want to do is get your hopes up and end up disappointed during an already rough time in our world.
Base Your Decision on Your Situation
It’s easy to look at an uncertain economy and get scared. However, the economy going up or down doesn’t impact everybody the same.
It’s important to know your current situation and have an idea of what you can expect in the future. You might have a thriving business or a budding career, while someone else doesn’t. Make your home buying decision based on your situation, not what the economy may or may not do.
Make Sure You Plan to Stay
Buying a home during an uncertain economy can be a bit of a gamble. However, if you plan to stay in place for five or ten years, the risk is minimal as we will likely have a much different economy by the time you sell.
If you plan to stay in the home you buy for many years, you won’t be taking the same risk as someone with an uncertain situation.
Home buying during an uncertain economy can seem scary. However, many people bought homes during the great recession and many are better off now because they did. Don’t let fear dictate your decision. Look at your own situation and make a buying decision based on your budget and your financial future, not the overall economy of our country.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger 704-650-5707 | annagrangerhomes@gmail.com |www.1stchoicepropertiesinc.com
