August 24, 2020 - Rise of the Single Buyer: Top Tips for Buying Solo
While couples are the most common type of homebuyers, a growing number of single people, especially single women, are starting to make moves in the housing market. Buying a home can be complicated, but it’s particularly challenging for single buyers.
Here are the top tips you should know whether you’re buying a new home on your own or on a single income.
Review your finances
This tip goes for every home buyer, but it’s doubly important when you’re solely responsible for the housing costs. This is the time to be honest about the state of your finances and what you are able to afford. Remember, there’s more to housing costs than paying the mortgage. You’ll need to be able to afford home insurance, property taxes, and maintenance just to name a few things.
Take time to review your credit report, correct errors, and pay down debt to improve your credit score. You can save more money with a lower interest rate on your mortgage the closer your score is to “excellent.”
Develop a financing strategy
Creating a solid financing strategy will improve your odds of securing a mortgage. Single buyers should consider an FHA loan since borrowers with good credit can qualify for a mortgage with a smaller down payment. Research different lenders and loan programs to find the best option for your financial situation.
Choose the right home type
Look at your current lifestyle and how you’d like your new home to support that. Also, consider any future needs as well. Do you want a home you can grow into? Are you open to renting out a room? Condos and townhomes are great options for single buyers. They are typically more affordable than a traditional single-family home and require less maintenance,
Plan for the future
While we can’t predict what happens in the future, we can still plan for changes. Consider what your options will be if you end up needing to relocate for a new job or what happens if you find a partner. Will you hold onto your home as an investment property or consider selling? These are questions you should be prepared to answer.
House hunt with a partner
When its time to start touring homes, don’t go solo. Buying a home is an exciting milestone so its important to make sure you’re making a clear, logical decision. Choose a trusted friend to discuss your goals and must-haves for your new home and bring them as you tour homes. They should be able to provide honest feedback and keep you focused on your overall home goals.
Homeownership is a large investment and lifestyle change but with the proper preparation, you’ll be ready to navigate the home buying process on your own.
With interest rates at historic lows, now is the time to invest in your future and buy a home of your home. Visit LexingtonChicago.com to learn more about our Chicagoland communities and find your new home.