Ask a Pro
Please join me as Chris Adriano, a local mortgage consultant, helps shed some light on borrowing during the COVID-19 pandemic.
What Should a Borrower Know in the Current Market?
Chris: Borrowers should know we are still lending and we are conducting business while adhering social distancing and stay at home orders. Many lenders have tightened up on their guidelines making it really hard to find financing especially for the specialty products. It is a very volatile environment right now, and guidelines are changing daily. I would recommend buyers contact their mortgage professional to answer any questions they have.
What Type of Rates are You Encountering in the Current Market?
Chris: It is a very strange time for interest rates right now as they have not been responding to the market the way they usually do. I have been seeing interest rates anywhere from the high 2% range to the mid 4% range depending on the scenario. I haven’t seen rates as low as they are since the last recession we had, so if you are qualified, now is a great time to take advantage of the low rates. Many lenders are now requiring the loan to be at a certain process in the loan process in order to lock in their interest rate, which is why it is very important to turn in the requested documents in a timely manner.
What Changes for a First Time Home Buyer?
Chris: I have not seen too many changes for first time home buyers due to the current guidelines.
>How Can I Best Prepare Myself to Buy?
Chris: The first thing I would do to prepare myself right now is have a conversation with my lender to see what options are available to me and see if I can get pre qualified. I would recommend everyone who is looking to purchase a home to go through the pre qualification process to see if they can obtain financing and if not to get on the right path for the future. Many lenders have raised their guidelines including higher credit scores right now so it is important if you are currently pre qualified to check with your lender and see if you are still able to use them for financing. Just remember during these times there will be some turbulence during the loan process so please be patient; we will get you to the final destination safe and sound.
We are experiencing daily changes during these challenging times, and one of the best wayS to stay ahead is to stay informed. I’m proud to say that Maui has come together as a community to help one another. We are hopeful for the future and Aloha for now.
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