Life insurance is a smart move when you have people in your life who depend on you financially.Read more
How to buy a home during the Covid-19 pandemic
Expert advice for home buying during an unprecedented time.
I’m about to become a first-time homebuyer — and yes, I’m purchasing my first home in the middle of the coronavirus pandemic. My biggest concern, of course, was how to maintain safe social distancing while touring various listings; my biggest shock was how quickly some of these listed homes went off the market. Although I didn’t get the first home I made an offer on, I did get the second one — and we close at the end of the month.
My homebuying experience is not unique. I reached out to several real estate industry professionals to ask them how the coronavirus was affecting home ownership; they spoke to the importance of wearing masks, the emergence of the virtual home tour and our current red-hot housing market. If you want to buy a house while COVID-19 is still active, you need to be prepared to view properties over Zoom, get your mortgage pre-approval letter as quickly as possible and make buying decisions within days, if not hours.
Here’s what you need to know before you start your own coronavirus homebuying process — and what I wish I’d known before starting mine.
In this article:
Home tours are going virtual
“The biggest change has been the use of virtual tours and showings,” says Kimberly Ann Zeidner, a realtor at Real Living Real Estate Solutions in Orlando, Florida. “For listings, I have my photographer do 3-D tours so that the buyers can ‘walk’ through the home without ever setting foot inside. For buyers, I do Zoom or Facebook Messenger video showings where I walk them through the home and they can ask questions in real time.”
James Judge, a Phoenix, Arizona realtor who showcases home renovations on Instagram at @thehousejudge, recently sold two houses via FaceTime. “Sellers prefer it,” he explained. “Less people going through their house.”
Judge still offers traditional, socially-distanced home tours, though he tries to limit them to vacant homes and listings. If the home is occupied, especially by a family with young children, he urges buyers to tour via FaceTime instead. His two recent FaceTime buyers did everything virtually until the home inspection phase — which meant they both made offers on houses that they had only seen through a screen.
Preapproval is more important than ever
If you’re thinking about buying a home — or even thinking about touring one over Zoom — it’s a good idea to get your mortgage preapproval letter in place as soon as possible. “Most agents typically try to get their buyers pre-approved prior to making offers in an attempt to avoid any disappointment or obstacles during a transaction,” says Adrienne Allen, a broker with Homie in Las Vegas, Nevada. “This procedure isn’t new. What has changed is the amount of sellers requiring it before their home is even shown.”
Andrina Valdes, COO of Cornerstone Home Lending, Inc. in San Antonio, agrees. “Getting an early loan approval — taking it further than initial prequalification — is a big deal right now for many buyers who want to get noticed in a competitive market.”
Requiring a pre-approval letter before showing houses helps weed out buyers who aren’t serious about purchasing a new home, and lets agents and sellers minimize in-person contact with people who aren’t likely to make an offer. Securing the pre-approval letter in advance also ensures that any buyer who begins the homebuying process has the ability to go all the way to closing. “Having an early loan approval can help your offer look more serious and stand out amongst multiple bids,” Valdes advises.
If you’re planning on buying a home in 2020, try to get your pre-approval before you start booking tours — even virtual ones.
“Having an early loan approval can help your offer look more serious and stand out amongst multiple bids.”—Andrina Valdes, COO of Cornerstone Home Lending, Inc.
Buyers need to make decisions quickly
The real estate market is very hot right now — and buyers need to be prepared to make decisions in a very short time span. “Here in Orlando, homes are going under contract in as short as a few hours or a few days,” Zeidner told us.
Lukasz Kukwa, a Real Estate Advisor with Coldwell Banker Residential Brokerage in Westfield, New Jersey, noted that a combination of factors including tighter lending guidelines, limited home inventory and historically low mortgage interest rates have created a seller’s market: “The increased competition for homes and quality of buyers in the market has created a smaller pool of buyers who are now competing with each other in multiple bid scenarios. This is causing homes to sell quicker, at higher prices with multiple offers and favorable terms to the sellers.”
Some of these factors, such as the economic fluctuations that led to lower interest rates and tighter lending requirements, are directly related to the coronavirus. On the other hand, the relatively low number of homes on the market was an issue before the COVID-19 pandemic began (in fact, low inventory was one of Realtor.com’s housing market predictions for 2020). More people are looking to buy than are looking to sell these days — which means that if you want to buy a home this year, you need to be ready to make a competitive offer as soon as possible.
Be prepared to wear a mask
Here’s one final coronavirus homebuying tip, though it almost goes without saying: If you want to buy a home right now, be prepared to wear a mask during any in-person interaction. “Masks are an absolute must,” Allen told us. She also explained that buyers should be prepared to drive their own vehicles or find their own transportation to any in-person home tours. “Before the virus, it was common to have agents touring buyers around in their own vehicle. However, due to the virus and the need for social distancing, agents are asking their buyers to meet them at the properties instead of driving them around.”
Kukwa also requests that masks be worn at all in-person showings, and takes coronavirus prevention one step further: “Before even showing the home, buyers and their agent need to sign a COVID-19 Hold Harmless Form and disclose if they have been exposed or in contact with someone who has been exposed to the virus in any way.”
What happens if you don’t want to wear a mask? Heather Wilson, a real estate agent with Property Managemently, notes that you might not get very far in the homebuying process. “We had a very interesting situation where a homebuyer was really interested in a home and wanted a physical tour of it but was dead set on not wanting to wear a mask. The homeowner had said that wearing a mask was a requirement for a tour. Needless to say, that tour never happened.”
I plan on wearing a mask to my home closing, and to any big-box retailers or furniture stores I need to visit in the process of setting up my new home — though I also plan on doing as much online shopping as possible to minimize face-to-face contact. (My current shopping list includes applying for a term life insurance policy, which is very easy to do online, so that my loved ones will be financially protected from the burden of my mortgage if something happens to me.) I’ll continue wearing masks in public and practicing good social distancing as I pack, move and put the new home in order — and someday, when the coronavirus pandemic is no longer a threat to public gatherings, I hope to throw an incredible housewarming party.
About Nicole Dieker
Nicole Dieker has been a full-time freelance writer since 2012, with a focus on personal finance and habit formation. In addition to Haven Life, her work regularly appears at Lifehacker, Bankrate, CreditCards.com, and Vox. Dieker spent five years as a writer and editor for The Billfold, a personal finance blog where people had honest conversations about money, and is the author of Frugal and the Beast: And Other Financial Fairy Tales.Read more by Nicole Dieker
Our editorial policy
Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our editorial policy
Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.
Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.
Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.
Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit: https://havenlife.com/plus.html
What our customers are saying
Apr 17, 2021
Very professional and responsive.
Very professional and responsive.
–Gerard Acklinread more at
Apr 15, 2021
The process of applying for life…
The process of applying for life insurance with Haven Life was very seamless and simple, and the rates were even better. Overall a 5-star experience.
–Verified Buyerread more at
Apr 14, 2021
Very early but very encouraging.
I just started with Haven Life last week. The process to enroll on-line was very simple and straightforward. When an issue came up with my history they communicated the problem and together it was rectified. I had decided to use Haven Life after researching on the web. They came up in the top or number one in most if not all lists.
–Adam Ackerread more at
Apr 14, 2021
Excellent company to work with!!
Excellent company to work with!!
–Lanceread more at
Apr 13, 2021
My experience and rate quote
I was pleased with my rate quote and the ability to choose different amounts after I was approved. Haven scheduled my exam quickly and their website is easy to navigate during the process. I know underwriting takes time as to ensure a client is insurable, but I felt my underwriting process was quite lengthy. Part of it was my doctor had retired and getting medical records took some time on the clinic's end. I would have liked for Haven to be more proactive in informing me more about the details of the delays, but they did so when I contacted them. Customer service was very courteous. Underwriting was very thorough evidently, but I am fine with that as it allowed me to get preferred rates. I would recommend Haven to a friend. If the communication would have been more proactive and the process a little less lengthy (it was about 3 months start to finish), I would rate them 5 stars
–RJ IIIread more at