Hundreds and thousands of American employees are being furloughed in the wake of the coronavirus pandemic. Global retailers and businesses, including Macy’s, Penney and Gap, and many others, have announced their decision to furlough the majority of their workforce.
Such decisions have also been announced across the restaurant and hospitality industries. Businesses have been hit hard due to the lockdown imposed to combat the pandemic and flatten the curve. As the lockdown continues, many businesses and industries are likely to adopt the same measures.
Furlough is a temporary measure, and it is characterized by an unpaid leave of absence. Employees and professionals across the US are unable to work and they will no longer be paid. Technically, it is not a layoff as the employees can return to their workplaces whenever the enterprise opens for business.
The impacts of the furlough are being felt across all major industries across the country, and the real estate market is no different in this regard. These temporary unpaid leaves have crippled the financial wealth of hundreds and thousands of workers, and it is likely to continue for several months until the pandemic is behind us.
There is a terrifying sense of uncertainty as thousands of employees struggle to keep up with their monthly expenses, utility bills, and mortgage payments. Businesses are also justified in their actions as they are forced to cut back expenses, which has been achieved by undertaking necessary pay cuts and furloughing their employees.
In such a situation, it is highly unlikely for a furloughed employee to enter the home buying market. If you have a nest egg of savings, it is highly advisable to avoid tapping into it just now. Given the horrid state of economic instability and financial uncertainty, mortgage companies have also taken strict measures on job verifications. Therefore, it has become increasingly challenging for furloughed employees to obtain mortgage loans from banks and lenders.
It is highly advisable for potential buyers to wait out this period of financial uncertainty and enter the home buying market once they jobs resume. They begin the loan process once they are back at work. For further information and advice with regards to your home buying plans, feel free to get in touch with EC Mortgage Lenders. We will be happy to assist you with regards to financing your home buying investment.