Challenges COVID-19 brought for Homebuyers
The impact of Covid-19 pandemic is enormous worldwide. As people’s health is challenged, so are their finances. At the beginning of the year 2020, the sudden spread of Coronavirus and months-long lockdown created panic among homebuyers. People who were planning to invest in a home took a back step for a while. It was a challenging phase for homebuyers to pay monthly mortgage payments on time. Let’s check out more challenges that homebuyers and mortgage lenders in Massachusetts faced and are still facing.
Disturbed Mortgage Cycle
As people went through drastic layoffs and salary deductions, the monthly mortgage payment had seen a huge drop-off. Mortgage Lenders had given forbearance support for up to 6 months. In 2021, there are still so many homebuyers who are unable to make their ends meet and make timely EMI payments. Many new homeowners are already looking for home rentals as they are unsure of the future mortgage payment scenario.
The real estate market experienced a downfall. However, many homebuyers continued their buying process even during the peak of the pandemic. Finances being stable for such people, they still struggled with the processings. Most offices were shut down, and people faced delays in document submissions, approvals, final verification within a pre-defined time. The FHA Loan applicant’s got permission for On-Call verification. Similarly, other loans allowed email verifications, voice verifications, and more. We at Drew Mortgage made special arrangements to keep the mortgage process uninterrupted for our clients.
Reduction In Interest Rates
Interest rate reduction since covid-19 has further extended an array of refinancing opportunity for borrowers. Although it is a piece of good news for many homebuyers, the flood of loan applications and request has reduced the processing time. Many leading mortgage companies are experiencing a surge in the application, resulting in a delay in approvals. The rates are expected to remain stable or reduce more in the coming months.
The new normal has given rise to the online application, verification and payments of a monthly mortgage. And, now, people are pretty comfortable with the online process that there is no looking back. The percentage of people using online portals to get mortgage approvals has doubled. This also means that mortgage lenders and homebuyers need to be extra careful with the transaction details such as passwords, verification documents, digital signatures and more. All the data available online is prone to the cyber attack. Advanced cybersecurity is the need of the hour for mortgage lenders and the client. Drew Mortgage ensures our customers transfer all their information safely and confidentially online.
The covid-19 pandemic has made the world economy unstable. Layoffs, on a huge scale, have made people unsure of what their future holds. The job stability factor is less reliable for people who faced significant salary deductions last year. Although the interest rates are low, people affected by any of these problems are still not ready to invest their time, energy, and money in home buying. The mortgage companies are providing the best of their services to gain the trust back.
Drew Mortgage is one of the leading Massachusetts mortgage companies. Get the best mortgage during these unprecedented Covid-19 times. We can assist you with suitable loans & refinancing options based on your financial profile, eligibility, and requirements. Take the right decision, come to Drew Mortgage for financial assistance!