So, You Want To Buy A House?


Here are some considerations to keep in mind when buying a house in the current market.

Whether you’ve been hit by a natural disaster, are experiencing a period of family growth, or are just ready to look for a new place to call “home”, there is a lot to consider given today’s housing market. Depending on your situation, home tours may be on the back burner, home insurance discounts likely haven’t been considered, and meeting with an agent may be far from your mind. Regardless, there are still ways to work towards ending up in your new dream home.

With the help of Travelers Insurance, here are our top 4 home-buying considerations to think about as you begin you look for your new digs:

Benefit from COVID Procedures

House hunting during a time when your area or region is shut down can have its benefits. There may be less competition for the houses in the areas where you might be planning to move, and sellers may be more motivated to sell or more flexible on price. Starting your hunt virtually while sheltering in place can be beneficial if you find you have the time to shop online more thoroughly; that extra effort may give you an advantage in finding a home you love within your price range. Once the crisis passes, there may be more house hunters back on the market and prices may escalate due to a more competitive market that benefits sellers rather than buyers, so taking a few steps forward now could be the right move for you.

Get Preapproved for a Mortgage

When you eventually find the home of your dreams, you will want the seller to see you as a serious buyer. To do that, get a mortgage preapproval before you begin house hunting. It may be possible to get preapproved online, so consider looking into that option. Mortgage preapproval is a letter from a lender that indicates how much you are qualified to borrow from the lender, at a specific interest rate.

While it may not be possible to meet with a lender when an emergency situation exists, such as the coronavirus pandemic, you can get your information organized that will help your lender prepare your mortgage preapproval.

  • Check your credit reports and get your credit score. Good credit, such as a FICO score of 620 or higher, will qualify you for a conventional mortgage and lower interest rate.
  • Gather all the information your lender will need to start the mortgage preapproval process: income information (W-2 statements from the last two years and recent pay stubs); asset information (bank statements and investment account statements); and your personal identification.

Once your lender is available to meet with you in person, you’ll have everything necessary to make the mortgage preapproval process go smoothly.

Use This Time to Research the Market

If you are just beginning to look for a home, take time to research the areas where you want to move, the area’s home values, and the average selling prices for the type of home you are interested in purchasing. Familiarize yourself with real estate terms and listing abbreviations so you can easily browse listings and focus on the features that most interest you. Finally, ask friends and family for realtor recommendations and check out their credentials and online reviews. Make a shortlist of real estate agent candidates to interview once you are able to set up interview times.

Explore Virtual Home Viewing

If you were all set to start house hunting only to be disrupted by a natural disaster, state or regional mandates, or even the COVID-19 pandemic, take heart: You can still view houses on the market right from your own home, whenever it is convenient for you. Many real estate agents post virtual tours of properties for sale on their websites and YouTube. When you take a virtual tour or attend a virtual open house, you can get a realistic view of the property. Then, with a click of the mouse, you can see all the details that are important to you. In addition, by touring homes virtually, you can see many more than would be possible in a single day with your real estate agent.

After you’ve gone through these steps, then it’s time to consider any potential home insurance discounts you’ll be eligible for after you make your move. There is a chance you can drastically reduce your insurance rates and save big year-over-year based on improvements or additions that make your home safer or less likely to suffer a loss. Determine if there are:

  • Alarms for burglary and/or fire
  • Fire extinguishers
  • Deadbolts on doors
  • A sump pump in the basement

If not, you may be missing opportunities to lower your insurance premium and cash in on home insurance discounts. As an independent insurance agency, The Feltner Group can help you get a great insurance rate on your new home (assuming you’re moving our way). Reach out to get started!