The pandemic has REALTORS pivoting to help our buyers safely navigate the current situation and continue with their real estate plans. Appraisers may not need to enter your home and closings are being done remotely as much as possible. Yes, interest rates are low but Fed rates at zero do not make your interest rates zero. There are many benefits for buyers to continue with their home buying plans. Here are what several trusted real estate experts are saying about what home buyers should expect from the market right now.
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FACT or FICTION: You don’t need an appraisal on your home right now? FICTION!!!!
You do need an appraisal, but they can be exterior-only for now.
“There’s new guidance from Fannie and Freddie as well as FHA and VA allowing exterior-only appraisals on most, but not all loans. We still need an appraisal, but the appraiser doesn’t necessarily need to go inside the home for most loans. There are certain situations, cash out loans and those for investment properties, that require full appraisals and some lower down payment scenarios are requiring full appraisals.”
– John Schutze, Regional Director, Texas Loan Experts
FACT or FICTION: People have no choice but to meet in person to close on my home. FICTION!!!!
With some exceptions, a lot of the process can be done remotely.
“We allow most documents to be electronically signed at closing. However, any documents that must be notarized still require the notary to be present and hand-signed. So, many title companies are either signing in-person at the title company or sending a mobile notary, doing their best to be safe. There are companies allowing e-notaries on certain loan programs and others are working hard to allow e-notarized documents in the near future. The issue is that most of the investors we sell loans to aren’t buying the loans unless they are hand notarized. I think this will shift with time.”
– John Schutze, Regional Director, Texas Loan Experts
FACT or FICTION: It is not a good time time to buy a house right now. FICTION!!!!
If you’re ready to buy it’s a great time because the rates are low and we have the technology to buy remotely, but everything is happening at a slower pace.
“There are going to be some challenges that may push out construction times to be more extended, but if you’re looking to make a move to a new home, you’ve got some time to kind of get your act together, pick out your stuff, get everything built, and move in after this is all behind us.”
– Vaike O’Grady, Austin Regional Director, Metrostudy
“I’m advising people that if they’re in the market to buy it, to go ahead…. What we know now is that rates are still at historic lows. I never thought we’d see rates in the threes again. When this thing turns, the inventory shortage will remain, and those things aren’t likely to change. So, if you have a secure job and you want to buy a house this year, my prediction is it’s only going to be harder if you wait.”
– John Schutze, Regional Director, Texas Loan Experts
FACT or FICTION: Austin’s housing market will crash. FICTION!!!!
Austin’s housing market before the pandemic was very strong, and experts say it will remain strong after it’s over.
“We ended 2019 with a record number of home closings…I think it probably would have been, and may even still, be the best first quarter we’ve ever had in 2020. Right up until this thing started, builders were having very, very strong home sales and home construction was just a proceeding on a record level.”
– Vaike O’Grady, Austin Regional Director, Metrostudy
