At Mid Oregon Credit Union, we have seen some impacts on our mortgage lending because of Coronavirus. Some are positive for home buyers, and some have created challenges. Here are a few Central Oregon COVID-19 home market impacts.
Making Home Purchasing Easier
The lending process has become much more online friendly. It is now even possible to notarize documents online. Oregon enacted HB4212a this past June, adopting remote online notarization in the state until June 30, 2021.
Other enhancements include people touring houses virtually, and even buying a house without ever being on the property. At the very least buyers are ruling out properties virtually, and then visiting only their final choice before making an offer.
Inventory has been impacted because many would-be sellers are not putting their houses on the market. The thought of searching for a new property in these uncertain times has people concerned. At the same time, people that can telecommute are trying to move out of the bigger cities. This is adding to the problem of an already low inventory.
The low inventory is expected to keep the values high and the forecast is an increase of 6% according to The Kiplinger Letter (Volume 97, Number 27, July 2020). The letter also comments that while rates are at historic lows, underwriting qualifications have tightened. The tightening of underwriting and the 70% increase in applications have made it tougher to gain loan approval.
Compare More Than Interest Rate
All interest rates are not created equal. Three of the home loan offers that we reviewed recently showed the lowest rate, but when we checked fees the offers included a two percent loan charge. It is important to review carefully the offers and compare the loan estimates. If you have an offer or a loan estimate, Mid Oregon Credit Union will be happy to review the estimate with you.
Closing Times An Important Variable
Several of our members have asked that we review offers and asked about timelines to close the loan. Many lenders have longer loan processing times because of the large increase in applications.
Mid Oregon has been closing home purchases in under thirty days, and refinances in forty-five days. The secondary market loans (FHA, USDA, VA, FNMA) are taking closer to sixty days. We expect to be able to continue this responsiveness.
Mid Oregon Credit Union is ready to assist your with your home loan. To learn more or get started, please visit our website or send us an email. We look forward to helping make your home purchase or refinance a reality.