Before the Coronavirus pandemic hit domestically, rates were at historical lows. Homeowners were refinancing to lower their monthly mortgage payment, and home buyers had a greater buying power. Then the Coronavirus hit, and life as we knew it changed. While we are practicing social distancing, we’re still helping our clients navigate through the home buying or refinancing process…we’re just doing it in a new way.

Our clients, friends and family have reached out to us to learn more about the market, and how we’re adjusting. We want to share the three frequently asked questions and answers with you!

Q: Should I still apply?

One of the biggest questions we’re answering, “Should I still apply for a refinance/mortgage?” Simply put, “yes!” While right now rates may not be as low as the market would expect, they are expected to drop. The best way to prepare yourself for the rate drop, is to complete an application today. Our teams are working with borrowers proactively so that when rates do drop, we have everything we need to lock-in your low rate.

Consider these scenarios:

Borrower A completes their application and submits their documents to their loan officer. The loan officer reviews the file and prepares it for the borrower’s future refinance/mortgage. The file moves to a queue until rates are in a better spot.

Borrower B talks to a loan officer. They decide to wait until rates drop to submit their application and documents.

Rates suddenly drop. Which borrower will lock-in the better rate? Borrower A. While our teams will work diligently to help Borrower B lock-in the low rate, odds are that Borrower B may miss the window of opportunity due to poor planning. Don’t be Borrower B, and don’t miss out on a good opportunity!

Note: For some mortgage products, now is as competitive a time as ever to move forward with your loan.

Q: What is Direct Mortgage Loans doing to practice social distancing?

Our teams have been working from home for the past month plus. We’re settled in and operating like normal. In fact, our teams are closing loans faster than pre-corona days!

We’re utilizing phone, email, text, video conferencing and our DML app to connect with clients. Additionally, we’ve created a new closing method – Flash Closing. With the Flash Close, borrowers can sign almost all closing documents from the comfort of their home, making closing a 5-minute transaction for legal documents. Pending law approval, this will soon be a completely remote operation with electronic notarization.

Q: Can I still buy a home during the coronavirus pandemic?

It’s still possible to buy a home – it just requires some creativity! Thankfully, the industry partners we work with have implemented creative solutions. Real estate agents are now offering virtual tours. Appraisals no longer require an interior review; Drive-by appraisals satisfy the loan requirement. Our teams are utilizing the DML App, and our online application links to process new applications, and are implementing our Flash Closing to eliminate time at the closing table. Title companies are holding closings in socially acceptable manners. One title company even stood outside someone’s residence and passed closing documents between the door to stay 6’ away from the client! The bottom line…where there’s a will, there’s a way.

While times may be uncertain, we are creatively adjusting business practices for the safety and health of you and our employees. It’s always a good time to consult with a loan officer to discuss your home financing goals. Contact our team to answer any questions you may have: 410.878.9730.