Buying a home isn’t just for married people or unmarried partners. Single homebuyers are very common and lenders are more than happy to work with them to purchase a home.
If you’re a single buyer in the market for a home, perhaps you have been renting for the last few years, there are some things you need to do to get ready. Because you are on a single paycheck, you will have less buying power than couples, but don’t let that dissuade you.
Here’s what you need to know:
Create a Savings Plan
Before you begin talking to loan officers and realtors, start planning your savings. How much do you want to put down? What is your spending limit?
Review your finances, including debts, savings, and yearly income. You will have to provide your lender with proof of funds to show that you do have money available. Then, your lender will send it to underwriting, who will take a closer look and confirm how much you can realistically afford.
Explore Different Loan Options
As a single homebuyer, there are several different mortgage options available through private- or government-backed loans. Depending on where you plan on buying, FHA loans and HomeReady by Fannie Mae are just a few of the options available to you as alternatives to no money down mortgages.
Down payment assistance is also available to qualified borrowers, as well as temporary buydowns.
Work With a Local Realtor to Find a Home In Your Budget
When it comes to purchasing a home on your own, don’t go it alone. Instead, hire a trusted, reputable realtor like those at Merchant of Homes. Our agents have connections, know the area, and will advocate for you as you go through the steps of buying. We will also help with essential paperwork and other documents so you understand what it is you’re signing.