Page 6 - TR RVO Extra 2020

6SS SUNDAY,SEPTEMBER20,2020 ADVERTISINGSUPPLEMENTTOTHETHREERIVERSANDRIVERVALLEY&OZARKEDITIONSOFTHEARKANSASDEMOCRAT-GAZETTE•EXTRA
HOME
Homebuying
during the COVID-19 outbreak
The process of buying a home can be both exciting and nerve-wracking. The anxiety associated with buying a home has hit new heights during the outbreak of the novel coronavirus COVID-19.
However, buying a home for many people is a good decision because one can typically get more home for their money when purchasing compared to renting, said Jinger Stewart, a mortgage loan officer at the main FAB&T branch in Jacksonville.
“Purchasing a home is an investment. You are putting your hard-earned money into something you can call your own and truly make it your own home,” Stewart said.
Historically, low interest rates and limited inventory have made 2020 an especially unique time to buy a home.
It’s also a competitive and potentially expensive time to purchase a home. While the economic consequences of COVID-19 have been severe, the Federal National Mortgage Association, also known as Fannie Mae, forecast a significant increase in median home prices in March 2020. City dwellers have scrambled to buy homes outside of cities, where social distancing is more difficult and the risk of getting COVID-19 appears greater than it is in suburban or rural
Due to the COVID-19 pandemic, homebuyers might have to rely on virtual home tours to view potential properties.
settings. That’s led to a lot of competition among prospective buyers.
Prospective homebuyers willing to enter the hectic fray and shop for a home during the COVID-19 outbreak may benefit from knowing what to expect as they search for their next home.
• Expect to move quickly. Realtors have seen homes sell within days of being listed, and that has put pressure on buyers to move quickly. It also highlights the importance of finding a lender who can get you pre-qualified for a loan quickly, Stewart said. Lining up a home inspector is another smart move. Be sure to ask around for recommendations, but make sure you have these two important professionals lined up before beginning your home search. Doing so will give you a better chance of buying in an unusual time.
To assist in the homebuying process, First Community Bank recently launched its new MyFCB Mobile Mortgage smartphone application. The tool allows users to compare different lending scenarios to determine the best fit, calculate the possible savings (or cost) of refinancing a mortgage, determine if homeownership is affordable based on one’s current income and expenses, and to easily connect to the First Community Bank Mortgage team and real estate agents.
“First Community Bank offers the best of both worlds — the convenience of a mobile platform backed by a team of local mortgage specialists who are always just a call away. The mobile app connects consumers with their loan officer, eliminating the need to come into the bank, while providing helpful resources for us to take care of our customers,” said Jennifer Scarbrough, senior vice president of secondary mortgage special projects at First Community Bank. “Our app carefully guides customers
directly to the information they need, just like our team members would if the customer had visited one of our locations. We believe customers will find the new app convenient and easy to use.”
• Get ready for virtual tours. Buyers might once have scoffed at the notion of buying a home they’d only seen in videos, but virtual tours have become the new normal in the wake of the COVID-19 pandemic. An April survey from the National Association of Realtors found that home tours had declined sharply. While 98 percent of Realtors reported taking clients on home tours as recently as February, that number had declined to 63 percent by April. As many regions pause their reopening plans, prospective homebuyers should ready themselves for virtual tours as opposed to in-person home tours.
• Expect limited inventory. While home prices are up, many people are holding on to their homes. The NAR reports that total housing inventory at the end of May 2020 was down nearly 19 percent from the end of May 2019. Buyers will have less inventory to choose from, so those intent on buying may need to focus on finding properties that can fulfill their needs.
• Make the best down payment you can afford. A high down payment makes buyers look better, no matter the state of the economy. An offer with a high down payment looks like a stronger offer, and that can make the difference between winning and losing a potential bidding war.
Buying a home during the COVID-19 outbreak presents some unique challenges to prospective buyers.
— Courtesy of Metro Creative, with contributions by Cody Graves, creative services writer