This past year has been difficult financially for many people in the Raleigh area. Many have found themselves unemployed. With mortgage rates so low, this would be the ideal time to buy. However, unemployment throws a wrench in those plans.
Here’s how unemployment can impact the home buying process:
- Halting the process. If someone is in the middle of buying a home when they become unemployed, chances are that the purchase will fall through. A substantial change in income will change the terms of the loan. However, keep in mind that unemployment is just one part of the loan process. If the unemployed person is purchasing with a partner, and that income is still solid, the purchase might be able to still go through.
- Effects of filing unemployment. Many people worry that having to file for unemployment and receive unemployment benefits will hurt their home-buying later on. This isn’t the case. Lenders look at many factors and being on unemployment for a little bit isn’t going to be a big issue especially in the current climate where so many are receiving unemployment due to the coronavirus pandemic.
- Other assistance. Filing for unemployment may make it easier for someone to get federal or state mortgage assistance depending on their situation.
- Make a plan. While plans to buy a home may have to be put on hold, it doesn’t mean that people need to stop working towards it. While unemployed, do whatever possible to stay current on bills and avoid taking on more debt to maintain your credit score. While it’s easy to get caught up in the day-to-day stress, having a goal to focus on will help you make financial decisions amid unemployment worries.
Navigating home buying options while managing unemployment takes the help of knowledgeable real estate and mortgage professionals. Our team at Raleigh Cary Realty has the experience to help. Contact us today to see what your options are.