It’s an ever changing market these days, and everyday seems like it’s changing even faster. Right now there is a lot of uncertainty, so it’s important to present the facts, whether we like all the facts or not. If you are like me, you just want some normalcy to return to your world.
For mortgage lenders, it’s a difficult time. Why? Because lenders want to make sure that when they lend money, borrowers can repay the loan. Right now, the usual requirements for a lender to feel confident that the borrower will be able to repay the loan are being challenged, due to the pandemic. A lot of people have been laid off or furloughed which makes lenders nervous. After all, most people need to be employed to pay back their debts.
Now, as of today, some lenders will accept verification of employment during the pandemic in the form of a guarantee from your employer that you will be reinstated after the furlough is lifted. My recommendation to you is to ask your employer for a letter verifying your re-employment once the quarantine is lifted. This may or may not be acceptable if you have a loan in process now for a purchase or refinance. Talk to your lender.
If you are an “essential” employee still working and drawing a paycheck, there should be no problem meeting the employment requirement for your loan. Remember it is still a great time to purchase or refinance, as interest rates are still super low, and even if you have to pay a bit higher interest rate to pay less down, or avoid personal mortgage insurance payments, you will still benefit from this all time low in rates.
Like the saying goes, we are all in this together. Like many of you, I can quarantined at home still, staying healthy and helping to flatten the curve.