Buying a house while you’re single seems to be a trend. More and more single people are making the transition from renting to home ownership, thereby taking advantage of lower rates and available funds. Oddly enough however, most of these singles are not men. A few decades ago this was a fairy tale, but last year single women made up 18% of the homes owned, while single men only made up 10%. But whether you’re a man or women doesn’t matter, what matters is if you’re ready. If you are on the fence it’s not impossible, as I stated earlier, plenty of people manage it. So why can’t you?
Whatever your case may be, here are some things to consider:
First off, as always, make sure you can afford the house. This means monthly AND other costs, such as the down payment and closing costs. Closing costs usually sucker punch a lot of people. Often time people are so preoccupied with the down payment they do not even realize that closing costs exist. A closing cost can add thousands of dollars to what you’re already paying, so be prepared for that as well. If this seems like too much to bear, do some research! Some states offer money to those who are making first time house purchases, making it easy for them to pay those extra fees. As for monthly payments, there are plenty of places where you can find mortgage calculators. However, what you should also consider are the taxes, insurances, and home owner’s association fees. Plenty of people overlook these things, and thus believe that they are saving much more money than they actually are. It’s recommended that all these fees typically should not exceed 33% of your net income, so talk to your agent, or your lender. Either one of them will most likely do their utmost to help you figure out what you are going to spend, and whether or not you should.
You should also buy a home for the right reasons. Buying a home when you’re single can give you some serious pride in yourself and in the place you live. You should not however buy a home to make some quick cash. It is unwise to expect a quick rise in the market, and most of the time if you do make any cash, it’s not quick. A home is an investment, and should be treated as such.
Lastly, don’t be afraid to shop around for mortgages. What I mean by this is that your buddy Joe may be a loan officer, but it does not mean he’s going to give you the best price. When you finally do make a lender decision, get pre-approved before you start shopping around. Don’t fall in love with something that ends up being grossly out of your price range. It ends up being a disappointment and a waste of time. Being pre-approved also means you will be better prepared for when it is time to buy the house. Don’t lose out to someone that came more prepared than you!
So whether it’s a mortgage or a house you’re looking for, our agents at National Realty Group and our team at National One Mortgage will help you get on the right track with securing a loan, and taking hold of the house you’ve always been dreaming about.