Military families can navigate homebuying
“The decision to buy is personal. Take into account your goals and financial circumstances. Interest rates are at historic lows, so if you feel financially ready, this is a great time to look.”
Wells Fargo Home Lending spokesman Greg Murray
Like many Americans, the coronavirus pandemic may have you thinking a lot about your current living space and about buying a home. If you're a military service member, veteran or family member, both new and tried-and-true tools and resources can streamline the process.
To get you started, Wells Fargo Home Lending provides these tips.
• Assess your readiness. “The decision to buy is personal. Take into account your goals and financial circumstances,” spokesman Greg Murray says. “Interest rates are at historic lows, so if you feel financially ready, this is a great time to look.”
If you decide to move forward, it's important to be realistic about what you can afford, and having a rainy day fund is a good sign of your readiness. COVID-19 has reinforced the reality of unexpected economic ups and downs. So, don't overextend yourself in buying.
• Build your team. Enlist a home mortgage consultant who can help you navigate the process, as well as discuss financing options that fit your needs. To get a better understanding of the local market, as well as the impact the pandemic may be having on home sales, lean on your real estate agent.
• Know your down payment options. Not all financing options require you to put 20% down. For military service members and veterans, VA loans provide low- and nodown payment options for qualified borrowers, and don't require monthly
mortgage insurance. Other low-down payment options to explore include Wells Fargo's yourFirst Mortgage program, as well as FHA and rural lending programs.
However, it's important to understand that more money down could reduce your monthly payments and interest paid over the life of the loan.
• Leverage digital tools. At a time when health and safety is top-of-mind, digital tools can offer a contactless experience. While a recent realtor. com survey indicates that 63.6% of consumers looking for a home want to see a property in person before buying, many start the hunt online, and now you have better opportunities to do so. In an effort to keep clients safe, many Realtors offer home walkthroughs using video chat apps.
When it comes to the mortgage process, lenders like Wells Fargo offer time-tested digital tools allowing you to handle many aspects of the process remotely, including signing disclosures, uploading documents and simply getting started. In the first six months of 2020, 53% of the lender's VA applications came through the online mortgage application.