Should you buy your first home during a pandemic?
If you were headed into spring or summer thinking maybe this would be the year you bought your first home, is 2020 still a good time to buy? Or should you wait?
It is hard to make big decisions these days. There is so much uncertainty.
In a recent interview on NPR, best-selling author Gretchen Rubin (The Happiness Project & Happier at Home) shared excellent insights on how to deal with anxiety and indecision. Her advice may help you get clarity on big decisions such as whether or not now is a good time to buy your first home.
Rubin suggests taking time to reflect on what you have gained during the pandemic. She also encourages people to think hard about what you have learned and what insights you may be having.
What We've Learned
First-time homebuyers are often nervous about being fully responsible for maintaining a home, especially when it comes to budgeting for home improvements or unexpected repairs.
One of the key things we have all learned since COVID started is that we can probably save more money than we ever thought possible by changing our spending habits.
Here are the projected losses for a few key industries in 2020:
In short, we are eating at home more and spending less on entertainment, cars & travel. That leaves more money in our budgets not just for a mortgage payment, but also for home improvements or simply a cushion for the unexpected.
Key Insights We’ve Learned
Because of the economic uncertainty, mortgage interest rates remain near all-time lows. Lower rates mean lower monthly payments or maybe you can.
You can now work with real estate agents to view listings online and do much of your own research before venturing out to see houses.
You can also meet with our mortgage lenders virtually, pre-qualify and process your mortgage online without ever leaving your home.
In other words, mortgage loans are incredibly affordable and the process of shopping for a home and getting your loan completed has never been more convenient.
What's Next for You?
During her interview, Rubin also noted that "one of the ways that we can feel better about what we’re going through is if we do feel like we've made good use of the time".
Click here to read the full interview for lots of great advice on handling stress, anxiety and big decisions during this difficult time.
When you are ready, contact a mortgage lender near you to find out more about current rates and discuss your loan program options!