With all that's going on around us and the dramatic impact that the coronavirus and COVID-19 are having on our daily lives, you may have decided that now's just not the right time to buy a home. And that's fine. We believe every buyer (and seller) should make fact-based decisions that are best for their current situations, and many buyers are choosing to wait out the pandemic before re-entering the home market.
With the economy struggling, many of us are remembering back to the recession that began about 12-13 years ago. But to be clear, this economic slowdown is very different from that one -- especially because that was a housing-led crisis and this isn't.
Most experts expect that we’ll see a decline in economic activity in the second quarter, followed by a sharp rebound in the second half of this year. Here's what John Burns Consulting has to say about the financial outlook for 2020:
"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."
So if you’re thinking about buying a home this year, you might be wondering ... what's the best thing I can do right now to get ready to buy later in the year?
The answer: get pre-approved for a mortgage.
That's something 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
Inventory is low in the Tri-Cities, and we don't expect that to change. So homebuyers will need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home.
2. Accelerate the Homebuying Process
Pre-approval can also speed-up the homebuying process. It means you can move faster when you’re ready to make an offer. 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.
Bottom Line
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. Get in touch with us today if you have questions about how it works and where to begin.
- Cari McGee
