Essential Steps for Buying Your First Home in a Recession
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As the country navigates another recession, many people are wondering whether now is a smart time to snap up a deal on their first home. Recessions typically cause widespread job loss, which means fewer people are buying homes and taking on loans. As a result, home prices and mortgage rates are likely to fall. However, if your income is stable and you have the money for a down payment, this could be the perfect time to close on the home of your dreams! Ensure your first big purchase goes smoothly by following the steps below.
Learn About Buying a Home During COVID-19
The COVID-19 crisis has created many barriers for home buyers. While Redfin explains that you can still buy a home during the pandemic, you may not be able to see the home in person before closing your sale. Sellers have switched gears to offer virtual tours instead of open houses and in-person showings to reduce their contact with strangers during the selling process. 3D walkthroughs and video-chat tours have made it possible for buyers to view homes without stepping foot inside. If you’re ready to buy a home, find a great real estate agent who can help you navigate the virtual showing process during this time of social distancing.
Get Your Finances in Order
Financial preparedness is one of the most important steps in buying a home, especially during a recession. It’s crucial that you have the savings to continue making mortgage payments even if the recession costs you your job. Once you’re sure that buying a home is the right financial move, get your financial prerequisites in order as soon as possible.
Getting preapproved for a mortgage will enable you to fast-track the buying process when you come across your dream home! Keep in mind, however, that obtaining a mortgage may be more difficult right now, so give yourself plenty of time to secure your loan. Thankfully, there are plenty of online resources and guides that can help you navigate your mortgage options and get your very first home loan.
Have the Home Inspected
As The Family Handyman explains, it’s always a good idea to have a home inspected before buying. This is even more essential during a recession. Homeowners may find themselves strapped for cash and, as a result, may neglect important maintenance tasks or major repairs before putting the home on the market. There could even be title issues on the home if the seller has unpaid debts. Avoid these expensive headaches by hiring a home inspector and requesting a title search before buying a home.
Negotiate with the Seller
Another benefit of buying a home in a recession is that the seller may be more willing to negotiate with you to land the sale. With fewer people looking for homes, there will be fewer buyers competing with you for the property you have your eye on. And if a home has been on the market for a while, the seller may be desperate to sell. Ask the seller to pay your closing costs, throw in their home appliances, or make appropriate repair requests. Just be careful to avoid common negotiation mistakes, like lowballing your offer to get a better price.
Clean Your New Home
After finally closing the sale on your new home, there’s just one more thing to do before you can move in—give your home a good deep clean. Cleaning and disinfecting your new home will ensure you catch any dust, dirt, grime, and germs that may be lurking around. Clean the crown molding, the floor, and everything in between. Too busy preparing for your move? You can save yourself a lot of time and exhaustion by hiring a professional house cleaning service like Evergreen Cleaning Company to tackle your home cleaning and sanitization needs.
Buying a first home will be one of the most exciting—and terrifying—experiences of your life. Make sure you have all of the resources you need to ensure a successful home buying experience. If you want to take advantage of the recession to close on a great deal, start planning your purchase today!
