The current economic situation and the coronavirus pandemic has changed how real estate lending works and it might not be the same ever again. All things related to mortgages have been affected. With the pandemic, there are a record number of unemployment since the last economic recession and there has been a clear economic turmoil as well.
For people looking to buy properties, the process of mortgage lending has completely changed. At the start of the pandemic it became very difficult to get a loan to buy a property but now there has been a clear change in the direction. It is very easy to get financing now that is extremely affordable, and it look like these changes will stay long after the pandemic is over.
Mortgage rates are at an all-time low. People with all the prerequisites of loan borrowing and stable jobs can now enjoy the lowest interest rates in the financial history of US. For people looking to buy or refinance, the affordability is high. It seems like this trend will at least stay for the year according to experts.
The pandemic changed lending standards. Though rates have been falling since 2018 when it comes to mortgage rates, the surprising fact is that the pandemic did not cause these rates to soar out of control as predicted at the start of the pandemic. The initial impact of the COVID-19 pandemic was to restrict mortgage financing but then the low interest rates led to an overflow of mortgage applications. Now lenders are seemingly willing to give out loan but with stricter terms for down payments, and credit among others.
All of this led to changes that were negative at first. People thought buying and refinancing will become difficult, but it looks like it might be easier than pre-COVID.
E-mortgages are the new norm
There is another significant way in which real estate lending has changed forever. If you can get everything online now from shoes to pizza, why not mortgage applications and loan closings be available online as well. The Coronavirus pandemic has forced lenders and real estate agents to move most of their work online. Before you could visit a house through a virtual tour but now you can get an online mortgage as well.
Even before the COVID-19 pandemic there were online mortgages, e-apps, and long-distance closings. But now these have become essential and mandatory. These can help you save time, energy, and keep you from coming in close contact with closing agents, loan officers, and mortgage underwriters. Many online websites also provide services that can be used for remote ink signed notarizations (RIN) during home closings.
The ease of these services, the speed, the lower cost and the convenience of doing it from the comfort of your own house will also guarantee that these practices will become standard practice. Experts predict that these online services will remain in business post coronavirus and provide people with mortgage borrowing that is easier and faster for many.