Homeownership isn\u2019t just for married couples. While renting is always an option, owning a home remains a priority for many people. Buying a new home is a complicated process for most buyers, but navigating the homebuying process as a single buyer can be especially challenging.<\/p>\n\n\n\n
As a single buyer, it can take longer to save for a down\npayment on your own. Plus, mortgage lenders will need to rely on just one\nincome and credit report to determine your eligibility. While it can be complex,\nthat doesn\u2019t mean solo homeownership is impossible! <\/p>\n\n\n\n
Here are some things you need to consider if you\u2019ll be\njumping into homeownership on your own or on a single income.<\/p>\n\n\n\n
Having a strong credit report is of even more importance\nsince lenders will determine your loan eligibility based on your credit report\nalone. Review your credit report and make sure everything is accurate. Report\nany inaccuracies immediately since it takes some time for updates to appear. If\nyour credit history could use some strengthening, use this time to improve\nyour credit score<\/a>. You\u2019ll also want to avoid taking out any new lines of\ncredit or making large purchases on credit. These are potential red flags that\ncould delay your loan approval. <\/p>\n\n\n\n You must be honest about your finances. Take a long, hard look at your monthly expenses and spending patterns to determine if you can realistically afford to purchase a home. You may need to cut back in some areas as you save for your down payment.<\/p>\n\n\n\n This financial examination goes for your home buying budget\nas well. There are more costs associated with homeownership than renting. The\nmortgage payment is just a part of the equation. You will also need to cover\nhome insurance and property taxes (if it\u2019s not already included with your\nmortgage payment), repairs and maintenance, and utilities. Home affordability\ncalculators can provide an estimated budget. Review your budget to make sure\nyou are able to manage these payments and find out how much you\u2019re comfortable\nspending on your home.<\/p>\n\n\n\n Important to note: you may qualify for more than you\u2019re\ncomfortable spending. You don\u2019t have to borrow the full amount you\u2019re qualified\nfor. Stick to the budget you\u2019re comfortable with.<\/p>\n\n\n\n Emergency funds are necessary for every homeowner but\nespecially single homeowners who don\u2019t have the luxury of relying on a\npartner\u2019s income to cover unexpected costs. Six months of mortgage and living\nexpenses is a good goal to achieve.<\/p>\n\n\n\n Think you must have 20% for your down payment? Think again!\nDepending on the loan program you choose, you could get a mortgage with as\nlittle as 3.5% down. This is good news for buyers who may find it difficult to\nsave the typical 20% otherwise.<\/p>\n\n\n\n Check with your lender for available loan programs. You may\nbe able to get a conventional loan with as little as 3% down, but there are\nalso government-insured loans with lower down payment requirements. FHA loans\nare popular with many first-time and single buyers because they have a minimum\ndown payment of 3.5%. If you\u2019re active or retired military, you may be eligible\nfor a VA loan that doesn\u2019t have a down payment requirement. Shop around for a\nmortgage to find the right option for your financial situation.<\/p>\n\n\n\n One of the benefits of buying a home by yourself is being\nable to buy the exact house you want. Think about what this home looks like:\nwhat features do you need? What features can you live without? This list of\nfeatures will guide your home search.<\/p>\n\n\n\n As you\u2019re looking at homes, make a plan for the future. Life is a moving target and circumstances always change. Consider what could happen if you get a new job out of state or find a partner. Is the home you\u2019re considering flexible enough to fit a new addition to your life? Does it have a high resale value? Is there potential to turn the property into a rental? Think about these possibilities. <\/p>\n\n\n\n You may be buying a home by yourself but that doesn\u2019t mean\nyou have to find the home by yourself. Bring along a trusted family member or\nfriend as you tour homes. Choose someone who will be a voice of reason and keep\nyou focused on your goal. It\u2019s easy to get carried away by the excitement of\nachieving this major milestone but your decision must be based on facts and not\nemotions.<\/p>\n\n\n\n Buying a home as a single buyer can be daunting but is also\nincredibly rewarding. The more you understand the buying process and what you\nwant in your new home, the better able you\u2019ll be to successfully navigate the\nhomebuying process.<\/p>\n\n\n\n Looking for more homebuying guidance? Check out our Homebuying Tips series for information for first-time homebuyers<\/a>, newlyweds<\/a>, and move-up buyers<\/a>.<\/p>\n\n\n\nGet real about your budget<\/h3>\n\n\n\n
Get your emergency fund ready<\/h3>\n\n\n\n
Explore mortgage options<\/h3>\n\n\n\n
Figure out what you want<\/h3>\n\n\n\n
Draft a friend for support<\/h3>\n\n\n\n