Buying in a Pandemic:

Buying a home has become even more complex in the COVID-19 environment. Many aspects of the home-buying process have traditionally taken place in person, so real estate transactions - like pretty much everything else - are just harder right now.

Buying a home may look a little different right now, but new digital tools and good-old-fashioned creativity are helping agents, buyers, and sellers abide by COVID-19 health and safety practices while still allowing buyers to achieve their real estate goals. Here’s what you need know if you’re looking to purchase a home right now:

Tighter Lending Requirements.

One particularly interesting phenomenon we’re seeing in light of the virus is that lenders are tightening up their lending standards. Buyers have the benefit of historically low interest rates, but actually getting approved for a loan may be a little harder than it has been in the past. High unemployment rates and general economic uncertainty have lenders taking extra steps to mitigate their risk.

What does that mean for you? You should anticipate more red tape than usual when it comes to getting a ‘clear to close’. You’ll likely be asked to verify employment and/or income multiple times throughout your transaction. It has become commonplace for lenders to verify your employment on the day of closing! You’ll want to keep key documents proving your income - W-2’s, tax returns, recent pay stubs - organized and available for your lender.

If you’re just starting to think about buying a home, it’s a great time to talk to a lender. They’ll help you identify key ways to get your finances in the best shape possible to get you approved with the the best loan terms when you are ready to buy.  

Safe Showing Guidelines.

To best protect yourself during the COVID-19 pandemic, buyers are encouraged to take every precaution as prescribed by global, federal, state, and local governments and health organizations to protect yourself, your family, and the greater public. When entering a property for a showing, we don’t know who has been on the premises and what precautions the seller and listing agent are taking. The following precautions have been published in an advisory by the Colorado Association of Realtors and are recommended to keep you safe during a showing:

• Do NOT view any property if you or someone in your household is positive for COVID-19, exhibits COVID-19 symptoms, or has been in close contact with a person diagnosed or suspected of having COVID-19.

• Always wear masks and gloves while viewing the property or in the company of people not living in your household.

• Only the buyers (those signing the contract) should be present for showings.

• Only one set of buyers should be in the property at any given time. If you miss your set showing window, ask your realtor to call the listing agent to reschedule.

• Do NOT touch anything in the property including, but not limited to, counters, cabinets, appliances, fixtures, switches, furniture, door handles, windows or window coverings. Please defer to your agent to turn on lights, open cabinets/doors, etc. as to minimize the number of people coming into contact with surfaces in the home

• Do NOT sit on any furniture or use the toilet.

• Maintain six feet of distance between you, your realtor and sellers (if present) at all times.

To follow the precautions, most listing agents are taking steps to disinfect homes between showings and to prep the home (turn on lights, open cabinets/doors, etc.) to make viewing the home a low-touch experience for buyers. If these steps haven’t been taken, I am prepared with masks, gloves and disinfectant to get the home ready for you.

Home Inspections and Appraisals.

Home Inspectors and Appraisers are essential workers here in Colorado - and have been allowed to conduct their services even at the height of the pandemic. There are new temporary rules from the Federal Housing Finance Authority that, in some cases, allow drive-by and desktop appraisals for loans backed by the federal government. Buyers may still attend the home inspection but are asked to follow the same procedures as they did at showings. Regardless, there should not be any delays in your transaction.

Creative Closings.

Title companies and lenders are getting super creative as they work to provide safer, socially-distanced solutions for their clients. Here in the state of Colorado, Governor Jared Polis has issued a temporary executive order authorizing remote online notarization policies (the end date continues to get extended, see the latest date here). These allow a notary and signer in different locations to sign electronic document, usually by use of video apps like Zoom or FaceTime, so you can eliminate one more human touch point in the process. What I have seen in most cases is the notary comes to a location of your choosing (instead of going to the title company’s office) and the buyer signs separate from the sellers to avoid contact between parties - it works seamlessly.

I’m Here for You.

Buying a home is stressful, regardless of whether or not there is a global pandemic. Thankfully, the real estate industry has been nimble while we battle COVID-19. I’m completely at your disposal - whether you’re ready to buy, or just want to talk to someone who really understands what buying looks like right now. I’ll do my best to make what can be an overwhelming process - personalized, humanized and simple for you.

- Chris Hawksley | Realtor, Broker Associate -