It may be hard to understand but there
are still people out there buying homes, renewing mortgages and refinancing
their homes to increase cash flow. How could they and why would they want to
mix with strangers in these uncertain times?
Well, until March 14th , most
places in North America were starting their busy spring housing market. People
had given notice in January and February that they were not going to renew
their leases and had made offers on new and existing homes. Many people were also
shopping for rates as their mortgages were coming up for renewal. Who knew that
the world was about to come crashing down on their heads.
The housing industry
had to make accommodations in order to help these people out. If you had an accepted offer on a house, how
could you obtain a mortgage without meeting a mortgage professional ?
Fortunately we had the technology to help us out. Mortgage applications can be
taken online or over the telephone and have been for several years. The big
change has been signing a mortgage commitment. Lenders now allow us to have
mortgage documents signed using an electronic signature.
If you had not made it that far in the
house buying process, realtors have also made a number of changes to limit
contact. Obviously sellers are not happy with having strangers walking through
their homes and touching door knobs and other items. “RECA, the real estate
Council of Alberta is encouraging realtors to ask a series of health questions
before realtors arrange to show homes” says Julie Pinault of Royal Lepage
Solutions in Calgary. “Think of a property as a museum and don’t touch
anything” she adds.
“Open Houses have been cancelled for the
foreseeable future” says Rebecca Yarmoloy of ReMax First. Homes can be first
viewed using websites and if you are seriously interested in a property.”
Some realtors are going even further. Lionel
Sale from Frist Place Realty states that buyers meet the realtor at the
property. The sellers are encouraged to turn on all the lights and leave doors
and closets open so that no one will touch any surfaces that could spread the
virus. Some sellers are leaving disposable gloves by the front door.
If a home needs an appraisal, what can you
do? Appraisers need 45 minutes to examine a property from top to bottom in
order to establish a proper value for the home.
Once again, adaptations have been needed. For bungalows, the appraiser
will go to the windows around the home and take photos. Other appraisers are using 3rd
party technology to do their jobs. They will Facetime or WhatsApp the client
and have them walk around the house they way they normally would in order to do
a full inspections. This is called a Full Modified Appraisal.
Finally, we get to the end of the process
and you need to sign all the mortgage documents with the lawyer or notary. At
this time, “wet” signatures are still needed. E-signatures are not allowed
which poses a problem for social distancing. Another solution has been found.
The home buyers go to the lawyer and go into a room with a copy of the mortgage
documents. The lawyer sits in the next room using video conferencing or Zoom
and goes over his copy of the documents, telling the buyers where they need to
sign and explaining any parts of the contract they may not understand. When the
clients leave, the lawyer goes into the signing room and picks up the signed
copy to be registered at the title office.
From beginning to end in the home buying ,
refinancing and renewal process, it’s now possible to obey social distancing
rules and accomplish your home financing goals.
If you need
any further information please feel free to contact me. At 403-836-1201
David
Cooke has been a mortgage broker since 2005 and presently works for Jencor
Mortgage Corp, situated in Calgary, Alberta
