Top Tips For Buying If You Are Single
Everybody knows buying a home is certainly a larger purchase. While it is a great investment in your future, home prices and everything that is involved financially can be a lot especially if you are doing it all on your own. A recent study from Freddie Mac said that nearly a third of all households are a sole-person which continues to grow. They say:
“Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households, . . .”
If you fall into this growing category of buyers, here is some helpful information to follow.
Know your credit score
When you are purchasing a home on your own, all of the finances and qualifications are all your responsibility. Other than having enough money and getting prequalified, you need to have solid credit. When you hire a mortgage broker, they will do a credit check as part of the process to get you prequalified. If your credit needs some repair, they can sometimes advise you on what you can do to make it better so that you will get a better loan rate.
Research down payment possibilities
Once you have gotten prequalified and know how much you can afford to pay for a home, then you need to plan for having enough money for a down payment. There are a lot of options out there today ranging from 20% down to putting very little down. There are also different loan types and term lengths to research so you can choose one that fits your budget and anticipated life plans.
Plan for future you
Put aside some time to figure out what you really want and need in your home. Do you expect you will need a lot of space for a future partner and family? Or do you want to keep things more simplistic with a condo where maintenance is taken care of with a regular fee. Maybe you may even want to start in a condo now and rent it out later when you trade up to a single family home. Your lender can help you with identifying costs but your real estate professionals, such as myself, can also assist you with what you want in regards to what to expect. In the end definitely lean on some professional advice and information while you prepare yourself for one of life’s larger purchases.