COVID-19 has ushered in a lot of change and uncertainty for the world and our community here in San Diego. When it comes to planning for the future, it can be difficult to navigate the logistics of turning those plans into a reality. When is the best time to buy in the wake of a pandemic? What is the financial forecast for our country and San Diego for the rest of 2020? 

We hear that you’re hesitant to trust your plans to the future. We also understand that the intimidation of committing to researching for answers is also overwhelming. 

The SD Mortgage Couple has the grit to navigate these difficult times with you. We have researched how COVID-19 is affecting the mortgage lending market here in San Diego. 

Trust us when we say that it’s not all bad news.

Mortgage Lending Logistics

Like many people looking to purchase a home, San Diego residents are unable to complete the process in person. Mortgage lenders aren’t able to secure the paperwork that is protocol. Steps like notarization, in-home inspections, and signing the final papers to purchase have been stalled due to COVID-19. To make things more complicated, appraisers, real estate agents, and title officers have been deemed non-essential employees during the pandemic.

So, what is the good news for those looking to buy in San Diego?

People have such a large capacity to be innovative. Both realtors and lending companies are providing their services online. Electronic copies of documents and software like Docusign make the process inch along in progress. COVID-19 has created space for creativity and innovation. Our advice to you is to reach out and test the waters. You don’t have to jump into the deep end of the process. 

Every home buyer starts somewhere. COVID-19 hasn’t completely cornered the market when it comes to purchasing a home.

San Diego Lenders

While loan interest rates are low, mortgage lenders are beginning to raise their standards. The reason being that the economic upheaval that COVID-19 has caused doesn’t guarantee banks that they will see a return on their loans. 

What does this mean for home buyers? The stricter rules may simply mean that they provide income verification throughout the approval process. Some lenders may also require home buyers to wait a specific amount of time between steps in the process.

Steve Kaminski, Head of US Residential Lending at TD Bank said in a recent interview with Forbes, ““Borrowers may be asked to verify employment again closer to their closing date or to make sure documents to verify their income are more current”

If you are looking to buy in 2020 then it’s vital that you have proof of income--including W2s, paystubs, and unemployment benefits if applicable. Be prepared with all the documentation that your lender suggests that you have in hand for the application process.

If you are looking to purchase a home do not let these changes in policy deter you from moving forward. There may be extra hoops to jump through that will delay the process, but it doesn’t mean that you will not be approved.

Relief for San Diego Residents

Even in all of the disruption, fear, and loss in our community, San Diego has proven to be steadfast for its residents. 

If you or someone you care about is in threat of losing their home then take advantage of these resources for San Diego residents. These resources are or for renters and homeowners:

• San Diego put a temporary ban on evictions. The temporary ban on evictions lasts until June 30, 2020, unless the City Council takes action to extend it. A full debrief on the ban can be found here.
• San Diego’s mayor Kevin L. Faulconer encourages landlords to rent to those that are experiencing homelessness due to COVID-19. The guidelines of the program can be found here.
• San Diego has also made protections for renters that are behind on rent due to COVID-19. Landlords are not allowed to charge late rental fees to renters that have fallen behind due to the pandemic.

San Diego Home Buyers

Our key takeaways here are that we see the ripple effect of COVID-19 daily--whether it’s on the news or in our own community. We see the damage, but we also see the potential. The world around us will not always be shaken. If you’re dreaming of your dream home then know that it’s possible to be cautious and content. We’re here to cheer you on and to ask any questions that you may have.