Are you a young adult who is out to buy your own house for the first time? Have you just started working and wanted to invest in your property but still don’t know how? Due to the pandemic, are you planning to look for houses for sale but can’t apply for mortgage loans?
Congratulations. You’re one of the lucky ones who can afford to invest during this pandemic! Not only that, but millennials like you are at an advantage in this pandemic home buying. According to the 2020 Home Mortgage Disclosure Act (HMDA) 2020, many millennials are buying houses during the pandemic.
In the total 4.75 million home purchases in 2020, millennials contributed to the 1.78 million homes sold. From the 3.4 percent acquisition growth in 2019, millennials’ acquisition grew into 15.8 percent last year.
What drove the increase in interest of millennial homebuyers? As a millennial, do you think this is the best time to buy your first property?
Pandemic House Buying: Going Digital
One possible reason for this is that millennials are dept with digital technology. Due to the restrictions brought about by the pandemic, lenders have shifted to digital tools to improve mortgage loans processes. According to a survey conducted by ICE Mortgage Technology, lenders believe that these online tools simplify the process. It also cuts data entry and reduces time in completing the process.
The simplified online application process also worked for home buyers. At least 63 percent of the respondents believed that this online process made home buying easier for them.
This is helpful to millennials who use the internet more than the older generations. According to a survey conducted by Pew Research Center, more than 9 in 10 millennials have smartphones. At least 86 percent of them use social media. This can be the reason millennials are more comfortable using online digital tools in applying for mortgage loans. Millennials like you do not only have the access. You also know about navigating the digital world.
So if you’re planning to buy a new house during this pandemic, how can you maximize the online mortgage application process? What digital tools can you use? Here are a few of them to help you get started:
Online Property Listings
If you still don’t have a property in mind, you can browse the listings offered by lenders online. Here, you get cost and location details, photos, and a virtual tour of the property. Through this list, you get to visualize the property without having to visit it on-site. With this, you can save your on-site visit later, if you’re already sure to buy the property. You can even communicate with property owners and real estate brokers through these online listings. Some platforms can even refer you to professionals who can help you stay on top of any paperwork you need to pass or sign.
Prequalification
Not sure if you prequalify for a mortgage loan? Lenders offer an online platform where you can check if you are prequalified. These prequalification criteria include contracts of property ownership and bank accounts. If you don’t pass the requirements, just input your property contracts and bank account details. Those who don’t will have to input their personal information. Submit documentary requirements online. The lender will then notify you if you have been prequalified.
With this, you save yourself the time and hassle of applying without knowing if your loan will be approved. You can then push through with your application. Just fill out the online application form. Submit the requirements via your lender’s electronic tool. Your mortgage broker will also guide you through the process via video conferencing.
Cost Estimates
Lenders also offer mortgage calculators online. Through these calculators, you can estimate closing costs and estimate monthly payments. This will give you an idea of how much to prepare for your loan. You also get to gauge if you are financially capable of paying your loan.
Housing Program Listings
Lenders also have housing program listings. You can browse through housing grant programs, down payment discount offers, and other housing promos. Such housing programs will help you in paying for your property.
As a first-time homebuyer, these online tools will simplify your mortgage application. If you are still lost on how mortgage loans work, your mortgage broker will help you understand the process. You might also want to consult real estate lawyers. Your attorney will give you legal advice on buying property. He will also make sure your rights are protected when you apply for a mortgage loan.
If you can afford to invest in a property, take advantage of the property deals available during this pandemic. This can be the perfect time for you to separate from your family and stand on your own feet.
