Image via Pixabay

The Listing Team realizes nobody really plans to buy their first home or investment property during a global crisis, but this could still be a good time to purchase property if your job is secure, you have plenty of money saved for a down payment, and you’re prepared for a longer-than-usual real estate closing process. However, there are three key things to know about buying property during a recession — and we’ll discuss them in the sections below. 

1. Mortgage Interest Rates Are Lower Than Ever

Amid COVID-19, interest rates have reached record lows — making it possible to secure a mortgage rate of under 3 percent in some cases. As such, the coronavirus-induced crisis could be an excellent time to apply for a 30-year fixed-rate mortgage if you’re looking to finance the purchase of your first home or investment property, have good credit, and plan on taking the time to shop around for the best deal. Depending on your eligibility, you could apply for an FHA loan, conventional mortgage, or a VA loan. 

To obtain a home mortgage, you need to explore your financing options, calculate the estimated amount of your monthly payment, and get preapproved for a loan as a first-time home buyer. When pre-applying for a mortgage online, you’ll typically need to provide the following types of information:

• Your estimated home buying budget

• The amount of your down payment

• Your approximate credit score

• Proof of your income, assets, and current debts

2. Long-Term Investments Are Best

If you’re buying your first investment property during the current economic crisis, most experts recommend looking for something you’ll hold onto for the long-term — rather than buying a property that you’ll turn around and sell in the near future. According to MarketWatch, house flipping could be risky during the coronavirus-induced recession — mainly because we can’t predict what the next few weeks and months will bring. Instead, it’s best to focus on long-term rental properties like single-family homes, multi-family properties, or condos. 

Bear in mind that if this is indeed an investment property you plan to rent out, there are particulars to keep in mind. Firstly, it’s important to wrap your brain around the concept of being a landlord and what it entails. There’s marketing, finding tenants, screenings, maintenance, repairs and rent collection. You can either tackle this yourself, or you can work with a property management company. Also, if this is a business, you’ll need to formalize your Florida LLC or S Corp with the state. 

3. Real Estate Agents Are Essential

Whether you’re buying your first home or rental property, hiring an experienced agent through The Listing Team will be crucial to your property search. Some of your house hunting may need to be done virtually, and one of our dedicated agents can help you to find the best properties in your desired location and price range. 

Another benefit to working with a skilled and dedicated real estate agent is that they can help you to schedule virtual home tours, answer any questions you may have about the first-time home buying process, and submit an offer when you’re ready. They’ll also have plenty of experience with first-time home buying.

Begin the Search for Your First Home or Investment Property

The coronavirus-induced crisis may be an excellent time to buy your first home or investment property, but you’ll need to be prepared to shop for houses online and present steady proof of income when applying for a mortgage. If you’re between jobs or at risk of becoming unemployed due to COVID-19, now isn’t the best time to be purchasing any type of real estate. 

If you’re financing the purchase of a home or rental property during COVID-19, you may also need to prepare yourself for a longer-than-usual closing process. However, you can speed things up if you get preapproved for a loan before beginning your housing search, and provide your lender with everything that will be needed to confirm your eligibility for a mortgage. By getting your finances in order, pre-applying for a mortgage, and working with a tech-savvy real estate agent, you’ll be more likely to beat the competition and secure a historic low interest rate on the purchase of your first home. 

Are you in the market for your first home or investment property? Let The Listing Team help you every step of the way as you search for the perfect Florida home. Reach out to us today to get started! 954-342-6180