5 Tips for Single Adults Who Want To Become Homeowners
Ready to buy a home but worried that being single will stop you? It doesn’t have to, given that solo homeownership is increasing in the United States. More people are staying single for longer, and in many markets, rising rental rates can make homeownership the better choice.
That being said, single adults have unique factors to consider when they buy a home. If you’re a household of one, it helps to follow tried-and-true advice as part of your home buying plans.
Be realistic about budget
The last thing you want is to get into a home you can’t afford or stretch your budget too thin. When shopping for houses, it’s better to be realistic about what you can afford. Make conservative estimates, and remember lenders will look at your debt-to-income ratio. It’s worth considering tiny house plans or smaller properties with fewer expenses.
Check your credit reports
Only your credit history and score are on the line. Lenders won’t be checking someone else’s credit report to decide on your mortgage application. Your credit score not only impacts whether you get approved but also your interest rate. Correct any errors before you apply and verify what interest rate you can expect.
Save for a downpayment
The more you have for a downpayment, the more you’ll save on monthly mortgage payments. If you put less than 20% down, you’ll end up paying private mortgage insurance or PMI each month. PMI gives the lender extra protection in case you default on your loan. Offers with higher down payments show sellers and lenders you are committed to buying the home.
Think about your long-term needs
In tight real estate markets, it can be tempting to make offers on homes that don’t really suit your needs. That’s because you may be getting outbid on properties you love, and there’s not much inventory. However, you won’t be happy stuck with a mortgage on a house with an awkward layout or one that’s too far from your job.
Instead, make a list of features and items you must have. Then, make a separate one with things you’re willing to compromise on. Prioritize the musts when looking and only follow through on properties that meet your criteria.
Seek out advice
Yes, you’re buying a home by yourself. But you don’t have to shop for homes or make decisions with limited knowledge or expertise. First-time homebuyers may not know what to look for or expect during the home buying process.
Ask parents and friends who have bought homes before to help you. They can go with you to showings and come up with questions to ask inspectors and real estate agents. Those with homebuying experience can also point out flaws and concerns that could become larger headaches down the road.
Final Thoughts
Buying a home as a single adult can be more challenging because you’re relying on one income. But many singles do it effectively by keeping their expenses, credit scores, and future needs in mind.
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5 Tips for Single Adults Who Want To Become Homeowners
