Saving for Homeownership During a Unique Time in History

During the COVID-19 outbreak sweeping the globe, there’s been some debate regarding whether now is or isn’t the best time to begin a homebuying process. Certain market indicators have forecast negativity, but some within the mortgage and real estate world may view elements of this time period as opportunities for savvy buyers.

At Primary Residential Mortgage, we’re happy to offer a wide variety of mortgage rates and home loan options, from conventional loans to FHA, VA, jumbo and numerous other loan types. Whether or not you’re actively thinking about starting the homebuying process at this time, this period is one that’s ideal for many to begin or increase their financial savings efforts with an eventual goal of homeownership – let’s go over a few reasons why now is an ideal period for saving money and how you can accomplish this.

Limited Spending

First and foremost, this is a period in time where many of us are spending less than we normally would on standard expenses. Meals out at restaurants have been limited, for instance, as have certain normal pursuits like haircuts, nail appointments and others. While none of these are necessarily large expenses, they’re common enough that when added up, they can lead to significant savings.

Another major area here is gas savings. Data from around the country shows Americans are driving less, and even those who do need to drive often are seeing some of the lowest gas prices available in years. Add this to your general decreases in spending and you might be surprised just how many additional funds you have available.

Incentives Available

On top of areas where you may be saving, there are also financial incentives available to many Americans who could be struggling during this period. The first of these is a government stimulus check you either have already received or could be receiving soon – if you are lucky enough to still be employed and not in dire need of this money, you can put it toward long-term savings.

In addition, those who have lost jobs can apply for unemployment compensation. Certain areas of this program have been altered during this unique time to assist those in need.

Emergency Fund

One area we wanted to note specifically here in addition to saving up for a home purchase: Building an emergency fund. Both for current and prospective homeowners, and even for renters and others, having money set aside in case of any kind of emergency, from job loss to a medical situation, is vital. If your car breaks down suddenly, for instance, you don’t want to be pulling from rent or a mortgage payment just to fix it – if you have an emergency fund in place, this will not be needed.

For more on how to save in smart ways during this period in time, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.