The housing market may seem like it’s filled with newlyweds looking for their first home, but there are a growing number of people who are looking to buy a home solo. Here’s how you can make buying your first home on your own a success.
Check Your Credit
Your first step to buying is to make sure your credit is in good shape. It will be the first item lenders will review in order to qualify you for a home loan. You can start by requesting your free credit report from AnnualCreditReport.com or call 877.322.8228. Review the report for any inaccuracies and contact the credit reporting company to correct any errors. If you think you need to work on boosting your credit score, spend a few months trying to pay down any debt. Commit to consistent on-time payments to start on a path to a better credit score.
Create a Budget and Start Saving
Buying a home will probably be the biggest financial purchase you will ever make, so it’s important that you do your research. With only one income, you’ll want to pinpoint what you can afford on your own. Start by making a list of your current monthly expenses and see how that would fit in with a new monthly mortgage payment. Then create a budget to help you save for a down payment and closing costs.
Choosing the Right Home for You
You’ll also need to decide what type of home is the right one for your lifestyle. Maybe you’re looking for a small starter home where you’ll have the freedom to make it your own. On the other hand, maybe you need to consider your hectic schedule and opt for a condo, where paying a HOA will allow you to have a lot of your home maintenance taken care of. It’s up to you to determine what you want.
Expenses of Homeownership
Be realistic about the expenses of homeownership when looking to buy a home. You need to make sure you have the money to keep up with the maintenance on your new home. There will be expenses you’ve never had before—repairs, lawn care, insurance and new appliances. Make sure you have some money saved up as a buffer in case of any unexpected emergencies.
Don’t Get Overwhelmed
Buying a home on your own doesn’t mean you need to go through the whole process alone. Your Realtor and Mortgage Planner will help explain everything to you along the way. Listen to the opinions of your family and close friends, some of which have probably already been through this and can offer you great advice.
If you’d like to learn more about your options for buying your first home on your own, reach out to one of our mortgage planners.