In the past few weeks, we have seen major changes in our world, economy, and lives. The COVID-19 health crisis is spreading viciously throughout the entire world. Individuals and businesses are working with minimal staff, remotely, or not at all to take full precaution in slowing the spread of this virus.
With the slowing economy, the stock market dropping, and increasing unemployment rate many are likely to compare this to the 2008 housing crash that caused the Great Recession.
Mortgage rates will likely remain low, or even fall further due to the effects of the coronavirus. The Federal Reserve has already decreased basis points to its target interest rates and will consider future reductions in order to counteract the negative impacts on the financial market. There is a possibility that this would help reduce the cost of borrowing and make housing more affordable, by creating a market shift towards a buyers market.
Getting preapproved for a mortgage loan is a crucial step in the home-buying process. A loan pre-approval allows borrowers to gain a competitive advantage over other homebuyers, by showing the seller that they are still qualified and have the purchasing power to move forward.
We are seeing many borrowers take advantage of low rates, and having a loan approval beforehand puts them in a better position to make a strong offer after a market shift.
To learn more, please call us and speak to a Bluefire Mortgage Group Loan Officer today at (760) 930-0569.
