A Guide for Single Homebuyers
A Guide for Single Homebuyers
Are you single and looking to own a home? Follow these tips and tricks to help you navigate this process with some ease.
While it may be a dream to build a home with our spouse’s and move in with our families, this is not always the reality we are facing.
Younger single people are now wishing to own a home or invest in real estate. If you are single and wondering if buying or building a home is possible, Jannou Credit Union is here to let you know that it is! We believe that homeownership should be accessible to everyone. Although buying or building a home while single can be challenging, you do not have to wait until you are married or have a family to consider it. Homeownership does not require marriage!
Here are some tips and tricks to assist you in becoming a homeowner all on your own. While these tips are intended for single home buyers, they may be applied to anyone wishing to become a homeowner.
Know the challenges single home buyer’s encounter
One of the first things you should be aware of are some of the obstacles you may face when wishing to purchase a home as a single individual. It is crucial to understand how your status as a single person affects the home-buying process. One of the major financial problems that a single person may encounter is their income and purchasing power. When a couple wants to buy a home, the lender (Jannou Credit Union) normally considers both of their incomes when determining how much they can borrow. This offers couples significantly more purchasing power than a single person with a single salary. Keep in mind that a lender will only offer you money up to the amount that they believe you can afford to repay. Therefore, getting approved for the amount desired may be more difficult for those who are single and have middle to low incomes.
Another crucial consideration in mortgage approval is your down payment, which can be a huge obstacle for single purchasers. After all, meeting a savings goal is usually easier when two people work towards it rather than just one.
While many of the problems single buyers experience are financial, there are other issues to consider even if you can comfortably afford to buy a home on your own. Factors such as mental and emotional well-being should be considered before taking that major step of owning a home while single as you will be in this process alone. To help navigate this step we advise that you speak to the professionals for advice and treat your mortgage officer as your best friend.
Tips to help you overcome these challenges
Let's look at some ways for overcoming these obstacles and becoming a homeowner even while single.
Create a savings plan
To make such a plan, you must first find out how much money you'll need to buy a house. You can do so by speaking with one of our mortgage officers or a builder. You'll be given an estimate of how much you'll need based on what you're looking for in a property. The size of the house, the number of rooms, bathrooms, and the location of the land are some factors that will determine the amount needed.
Keep in mind also that you will need a down payment for your mortgage, so plan to save for it. Jannou Credit Union has a savings account that will enable you to accomplish just that. Our registered home ownership savings plan enables first-time home buyers to put money aside for the construction of their home. Members can save anything from $50 to $500 per month to help them save towards the purchase of their property.
It's never been easier or more rewarding to save towards your first home. Don't forget to inquire about how you may join the winners circle and work toward owning a home even while single.
Create an additional source of income
Having a second source of income will provide you greater purchasing power and make it easier for your lender to approve your loan. Find something you are passionate about and turn it into a side hustle. Whether it is doing hair, makeup, or mechanics. That way, you will be doing something you enjoy while also earning money. When submitting a second income from a side business, ensure to keep adequate financial documents to offer to lenders. Having two incomes will not only help you boost your mortgage chances, but it will also help you pay for the various costs that come with owning a home after you have moved in. Such as property taxes, homeowners’ insurance, and bill payments on a monthly basis.
Pay down Debt
When buying a home as a single person, you should avoid making major credit purchases right before applying for a home loan and pay down debt as much as possible. If you have a lot of debt, securing a mortgage or saving for a down payment may be difficult, especially if you are applying on a single income. Instead of rushing into homeownership, you should concentrate your efforts on paying off debts you have, such as student loans, vehicle loans, or credit card debt.
Paying off debt reduces your debt-to-income ratio, which increases the amount of money you can borrow and makes you more appealing to lenders, potentially resulting in a cheaper interest rate. If your monthly debt payments are reduced, you will have more money to put toward a down payment.
Having said that, your status as a single individual will have no bearing on your loan qualification. Because you are not married, lenders cannot refuse you a loan. While your financial situation may be different due to only having one source of income, lenders cannot refuse you a loan solely because you are single. If you're single and seeking to buy, speak with a Jannou mortgage officer. We will be there for you every step of the journey. Jannou can assist you with your next move and bring you home, whether you are married or single.
We are here to assist you in achieving your dream of becoming a homeowner even while single.
