Applying for a Mortgage Loan Amid the Coronavirus

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Precondo-ca

Precondo-ca

As many of us shelter in place with stay at home quarantines amid the coronavirus health pandemic, interest rates are still at all time lows and worth considering if you can swing the extra steps and can qualify based on your current income.

Here are some updates as of this post. The information continues to evolve and change as lenders figure out this new normal. Consulting a mortgage professional will give you more clarity on your specific scenario.

4 Updates on the Mortgage Loan Process During Coronavirus

  1. Assess your current mortgage loan rate and any debt you want to consolidate or house projects you may now have the time to complete. Many borrowers are refinancing to interest rates in the 3% range to reduce their current interest rate and save on their monthly payment, consolidate debt, or pull cash out to complete home remodeling. Discussing this with a mortgage professional will help you determine if the rate and costs will benefit you.

  2. Be prepared to verify your income again and again and yet again. Unfortunately with the health pandemic plaguing the world right now and market instability, the lender wants to ensure their investment in You AND the home. They will contact your payroll and/or Human Resources department to verify your employment and income several times throughout the process. Patience is key as we all navigate this new normal, together.

  3. Appraisals-The lender may complete an interior appraisal, especially if you are getting cash out. Cash out is also considered when paying off credit cards, loans and other debt. Ask your loan officer about this upfront. Our company is giving our borrowers, COVID-19 Protection Kits that include as many items as we can to protect the appraiser and our borrowers. Stay safe. Stay healthy.

  4. Stay current on your existing mortgage loan payments. This is important during normal market conditions and very important now amid our current environment. The lender wants to see you have the ability and willingness to repay your existing loan.

We offer free mortgage loan quotes, amortization schedules and are available to answer your questions! Contact us at (619) 520-8810 or email.