/Applying for a mortgage loan during the virus
Applying for a mortgage loan during the virus 2020-04-01T14:15:17+00:00
Loan application during the virus time

Applying for a Mortgage Loan during the Coronavirus

The newly discovered Covid-19 virus has rapidly changed the economic situation and has stirred up a lot of insecurity. But does it mean you have to forget about the dream of your own home and the opportunity to get a mortgage?

The current situation has shaken us all. People have a lot of questions, but not all of them are answered. Therefore, Direct Mortgage Capital, looking towards a brighter future, has summarized some questions regarding the availability of a mortgage loan.

Is DMC still accepting mortgage applications?

Yes, we continue to support everyone who wants to receive a mortgage loan.

Can I do it while I work remotely?

Yes, DMC is a mortgage platform that supports most steps through a Customer Journey in finding and acquiring a new home.  We support many Customer Journey activities from our website.  Our Resource Center  includes informative articles on home finding and purchasing and all aspects of the mortgage borrowing process, we have Research downloads on the housing market, and a variety of calculators to help you do the math around questions of down-payment amount, monthly payment and interest rate and own or rent.

Additionally, there are opportunities to apply for an instant pre-approval (sourcing all required documents for a serious decision) or request a consultation form one of our professionals (who are often working remotely too).

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Are banks still working during the coronavirus Social Distancing initiative?

Yes, they are.  We have been in contact with all our banks and they are all still working.  Most of their staff, like everyone else, are working remotely.  This may slow down processes a bit, but all of them are working hard to overcome any communication or Customer Service issues that may arise from remote work.

Are apartments and houses still selling?

Generally, yes, they are.  Of course, the sellers ultimately decide on whether to sell or not based on negotiations with buyers, but there is no specific preventions of this economic activity from occurring except what limitations Social Distancing may have been put in place by various parts of the vendor network a real estate transaction requires.

How will the market handle an income disruption or the treatment of an income disruption during this crisis?

In processing a loan application, a lender will answer two basic questions; can this person pay me back and will this person pay me back.  The income must not only meet the ratio requirements (i.e. be enough to pay back the loan and have enough left over for the family monthly spending needs, but it must be stable).  To answer the stability question, they will review your profession and review it against the stability of that industry in the economy right now and the foreseeable future.  They will also look at how long you have done this and if you have had any employment disruption.  If you have had an income or employment disruption, they will ask you to explain it and try to understand if it could happen again and impair your ability to repay your loan.

As to the question – will you repay this loan, they will look at your credit history and see your repayment habits.  They will ask you to explain any late payments they see over the past few years.

Should I apply for a mortgage loan during the Social Distancing period of the coronavirus crisis?

Maybe.  Look at the above and answer them for yourself.  Talk to one of our specialists or complete the web application. Preferably, do all three. May or our customers use our web application to establish their borrowing capacity and probability of getting a loan, then continue shopping to the right home.

We can work with them through the entire process, helping at key steps along the way. Much of the Customer Journey can be done from the comfort and safety of your own home.

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