June 8, 2020
As we enter mid-June, the nation and world is swept up in social unrest. But the effects of COVID continue to impact the behavior of our population, and in turn the people’s home buying behavior. It is interesting to note what Orion’s brokers are seeing and hearing among their clients and the general population.
Brokers are seeing a huge pent-up demand by potential home buyers. COVID has impacted how much money they plan to spend on a new home (some more, some less). Surprisingly, or perhaps not, given current health concerns limiting open houses, the majority of first-time buyers said they’d buy a house without an in-person tour. LendingTree found that few repeat buyers said they would do the same.
Brokers report that the COVID pandemic has advanced touring houses virtually. Most potential home buyers have toured a home virtually, and those that haven’t yet plan to. Polls show that a portion of buyers say they’d buy a home without physically touring it in person.
Of course some borrowers are being motivated by record-low mortgage rates, and by being encouraged by being able to save a larger down payment because of reduced spending. Of course being stuck in a small space makes some want to own their own home even more. Orion is offering very attractive rates right now for both purchases and refinances. We are also working with brokers on home buyers who previously thought that they might not qualify for a mortgage, with Orion’s AEs showing them programs that help. Yes, in some cases there is less flexibility with credit standards or down payment levels, or increased documentation than six months ago, but it is worth a discussion.
Brokers are making some recommendations to clients. First, improve their creditworthiness. And experienced broker can show a client how with a simple phone call, and it will help lower their rate with Orion. Reducing a client’s outstanding debt will help their chances of qualifying for a mortgage. And have an Orion AE work with you on finding the best program for your clients as we head into the summer buying season. You will be surprised at the options.