4 tips for buying a home as a single buyer
When you’re a single homebuyer moving on from renting, buying a home is much the same as purchasing with a spouse or partner. Single buyers like you are very common, and lenders are more than happy to work with you to find a loan that works for you.
Before jumping into buying a home as a single buyer, remember these four tips:
Understand your home loan options
As a single homebuyer, look at your home loan options. Many programs are available for first-time, single homebuyers, from no-money-down to FHA loans to conventional. Down payment assistance is also available to qualified borrowers.
Your lender will work with you to find your best loan options.
Have a savings goal and pay off debt if needed
Have a savings plan: How much do you want to put down on a home? What is your spending limit? Answering these questions will keep you on track.
Paying down debt is an important piece of advice for all buyers, but it can be an advantage for single buyers, especially if you have significant debt. Your debt-to-income ratio will limit how much you’ll be able to afford.
Consider a co-signer
If you only have one source of income your ability to afford a mortgage is less secure than those who have a second paycheck to fall back on. Consider a co-signer on your mortgage loan if you are having trouble getting approved on your own. A co-signer is usually a family member or friend who will sign the mortgage loan with you and is also financially responsible for paying it off. They don’t share in the ownership of the property. Your lender will look at both your income and the income of your co-signer and decide whether to approve you for a loan.
Work with a real estate agent
As a single homebuyer, working with a real estate agent is always recommended. A trusted, reputable real estate agent will know your preferred area, negotiate with the seller and help you with anything you may not understand about the homebuying process.
When it comes to finding the best mortgage to purchase a property on your own, look no farther than your local lender at SmartMortgage. A division of Guild Mortgage, SmartMortgage has knowledgeable and experienced loan officers who will work with you to find you the best loan for your situation.