Buying a home is not a walk in the park, you need to think about things thoroughly and start making a plan to buy a house. Whether having a family or a partner is what most people want later in life, not everyone is blessed to find the happy ending they desire.
And while having a partner helps on paying your mortgage, did you know that you don’t need two incomes to purchase a house? The experts recommend you hire a certified real-estate agent to help you get through the whole process. Follow these real estate experts’ tips to pay off your mortgage debt with a single income.
Rinomato, a TV host and Canadian Real Estate professional, was interviewed a few years ago about handling a home purchase alone. Her answer was simple, and you don’t have to compromise having an extra garage or a vast living space if you don’t want it. You only need to focus on the things that you want.
Rinomato believes you don’t need to depend on your partner’s income to buy your dream home. Whether you’re a single individual or divorced, separated, or a single parent, you can obtain a mortgage alone as long as you consult with a financial adviser to evaluate your income and determine what mortgage fits your budget.
Rinomato also says women should invest in homebuying where you can live, stay, and style that matches their preferences. On a separate interview, she states that women can also consider buying a home as a means of financial security since you can use it for future investments.
Orman is a financial expert on buying a home with a single income including singles planning to live alone. According to the American Community Survey, most single women have a higher homeowner rate at 22% while single men who own homes comprises less than 13%. Single men and women make up over one-third of all the homebuyers.
She further pointed out on her blog to aim for a FICO score higher than 740 and pay your pending credit card balance to improve your application’s success rate. A 20% below utilization rate will help you to qualify for a better offer in the mortgage.
She advises you pay your other debts like the car and student loans to increase your FICO score. Moreover, the mortgage lenders will have more confidence in approving your home application if you have a savings account or emergency funds to spare.
Bach says millennials should take the opportunity to buy their own home as early as they can (provided they out paid their other financial obligations). According to him, most millennials commit a mistake of not buying their first homes. He emphasizes how young professionals have a longer time to pay off mortgage debts compared to when they get older.
Aside from that, these working adults have all means to increase their income while they’re still strong, so they can out pay their mortgage debt as early as they can. Furthermore, Bach says the longer you wait to buy a home, the more expensive its rates will be. So it’s recommended to buy as early as you can.
According to Ralph, you should also study the latest trends in real estate instead of sticking to the traditional method of buying brand new homes. Not only these properties are expensive, but some mortgage lenders prevent you from altering the house’s designs and features until the locked-in period expires.
Instead, he recommends you buy older properties and consider renovating it. Not only they are much cheaper, but you can redesign it to suit your preferences and tastes.
He emphasizes these mentioned mortgage products are more worth pursuing a buyer with a single-income than brand-new homes. Ralph also recommends acquiring an FHA 203k loan or a HomeStyle loan from Fannie Mae. These loans can help you cover not only the house’s principal amount but also the construction costs to make your newly bought home look new.