Just because you are single doesn’t mean that you have to rent forever.
Many singles across the nation are buying their own homes and establishing new households. Banks are not allowed to discriminate against consumers based on their marital status, so if your financial situation will support the purchase of a home, you have a good chance of qualifying for a mortgage loan.
Here are some things that you should think about when you are single and buying a home.
Can You Afford To Buy A Home?
Before you make the decision to purchase a home, you must think realistically about whether you can afford to buy and maintain a home.
There are many expenses related to the purchase of a home that are in addition to the mortgage loan that must be considered. The annual costs of maintenance expenses, property taxes, utility payments, and insurance can easily cost a homeowner thousands of dollars each year. What if your house needs a new roof? You can roll this cost into the loan amount. Make sure to either budget for this expense or contact Jayhawk Exteriors to have them perform an inspection before you apply for a loan. Make sure that your budget can support all of the costs of owning a home, or you may find yourself in financial trouble and resenting your purchase.
Obtaining A Loan
Navigating the lending process can be difficult when you are single and buying a home. Tougher lending standards have made it more difficult for single people to qualify for mortgage loans. Unlike a couple, a single person generally must pay for everything with a single income. If you have imperfect credit, you may find yourself paying a much higher interest rate for your mortgage than someone with an excellent credit history.
There are some government programs that can help a single person get a better rate on their mortgage loan. For example, FHA loans offer lower interest rates and require lower credit scores for first-time homebuyers to qualify. These loans also require a lower down payment than many of the loans offered by banks and mortgage lenders, often as low as 3.5 percent of the purchase price. The lending standards for FHA loans are stringent and require significant amounts of documentation, so make sure that you have all of your income and credit documents in order before you apply for the loan.
Comparing The Costs
It is important to compare the costs of the offered loans carefully to determine which one is truly the better deal. In addition to looking at the interest rate that will be charged for the loan, you should also review all of the fees and closing costs associated with the loan.
Large fees added to the loan can significantly increase the amount that you pay in interest over the life of the loan. Paying careful attention to these fees can save you thousands on the cost of home.
Were you single when you bought your first home?