Is it Harder to Qualify for a Home Loan During the Pandemic?

COVID-19 has obviously had a massive impact on every aspect of our existence. When the entire world screeched to a halt, everyone’s professional and personal path was altered or affected in some way. 

The Federal government did help by offering economic stimulus funds, loans and programs to try and help the workforce bridge the gap. And while whether more such assistance is needed is certainly debatable, there’s no denying it did indeed offer a lifeline to many American families.

The lives and livelihoods of many are still going through a combination of pushing through, being put on hold and figuring out how to move forward. Yet, even as we navigate these unprecedented times, there are many realities to face. And sometimes, even opportunities.

For example, what if you were fortunate enough to land a new job in another town, and now you need to relocate? What if you, like so many other families found out during the pandemic, realized you need more out of your home and living situation, because you’re spending so much more time at home? 

These situations are happening, and in many markets around the country, the real estate market is strong and homes are selling. That and historically low interest rates might actually work in your favor when it comes time to apply for a home loan.

If you do find yourself in the position to buy a home, you might be wondering… 

“Has the home loan process changed or gotten harder because of the COVID-19 pandemic?”

The short answer is “yes”, but things are slowly returning to normal, at least in the home loan world. 

When coronavirus first reared its head back in March, millions of Americans were laid off and unemployment skyrocketed. This had a direct impact on the home loan process. 

One of the main qualifications in being approved for a home loan, is being gainfully employed and having a steady income. Of course, there are other major factors, such as your credit score and your down payment. But providing your pay stubs and verification calls to your employer are boilerplate occurrences in the home loan qualification process. And, well, that got a bit tricky with the onset of the pandemic.

After all, millions of jobs were being lost daily with furloughs and layoffs, and it was difficult to keep up with. It made lenders nervous. Many made their approval process more stringent, requiring higher credit scores and increased down payments.

Qualify for a Home Loan With Confidence—Even During COVID

However, as more states and businesses “opened up”, Americans began to adjust to living with the pandemic, and some things have (sort of) returned to normal. Many home loan lenders seem to have fallen into this category. In most cases, qualifications have stabilized and returned to pre-COVID conditions. Which is great news for home buyers! Especially considering how low interest rates have fallen.

If you find yourself in the financial position to buy a home or want to refinance your current loan, please don’t hesitate to reach out to the professionals at LoanFleet. We’re here for you; to answer your questions and provide you with as much guidance as possible.

Contact LoanFleet today for more information.