Everything You Need to Know as a Single Homebuyer

Michael Kenny
  • Dec 16, 2021
  • 4 min to Read
Everything You Need to Know as a Single Homebuyer

Buying a house is one of the biggest decisions you will make in your lifetime. It’s also not an easy decision to make, but it can be made even more difficult if you are single. If you are considering buying a home as a single buyer, then this blog post will help guide you through some important steps and considerations that should be taken into account before making your purchase.

Know Your Credit Score

Your credit score is one of the most important factors that a lender will look at when considering your loan application. It’s important to know what your credit score is and understand how it affects your ability to get a home loan. You can get a free credit report from AnnualCreditReport.com, and you can also get a free credit score from CreditKarma.com or CreditSesame.com.

There’s nothing wrong with being new or having little credit history if this doesn’t apply to you then it would be great if you could just skip this point but there are some lenders out there who specialize in helping people with no credit establish their score – which ultimately helps them qualify for loans at low-interest rates down the line. 

Have A Down Payment saved up

It’s always advisable to have a down payment saved up before buying a house. The more money you can put down on the purchase price, the less money you will need to borrow and therefore the less interest you will pay over the life of your mortgage loan.

Get Pre-Approved For A Loan

When you’re ready to start looking for a house, take the time to get pre-approved. This process will let sellers know that your offer is serious and can help speed up the negotiation process as well as ensure any contingencies built into an offer are realistic from the outset of negotiations.

Make Sure Your Income Is High Enough To Cover The Mortgage Payment

Before you make an offer on a house, you should ensure that your total housing payment (principal and interest plus taxes and insurance) is no more than 45% of your monthly gross income.

Be Flexible With Your Closing Date

Sellers don’t like to wait around for buyers whose homes are pending sale. So when it comes time to negotiate the purchase price, be flexible with your closing date so you can move in as soon as possible after settlement occurs.

Get An Inspection Done On The Property You Want To Buy

Every home has its issues but getting them identified ahead of time via inspection will allow you to renegotiate the sales price or ask the seller if they’ll pay for any repairs before moving forward with negotiations. Or, you can simply back out of the transaction.

Know Your Budget

If your budget is $800,000 and a home for sale at that price doesn’t seem to exist in your desired neighborhood or location you may have to consider making an offer on a property priced lower than what you’re comfortable spending. But if possible try not to exceed more than 25% above list price so as not to over-extend yourself financially speaking.

Explore Down Payment Options

There are many down payment assistance programs available to help single homebuyers, but each program has its own set of eligibility requirements.

Some popular programs include:

  • The Home Purchase Assistance Program (HPAP) which offers low-interest loans up to $50,000 with no monthly mortgage insurance premiums required.
  • The Nehemiah Corporation’s Single Family Homes program which offers down payment and closing cost assistance in selected areas.
  • Fannie Mae’s HomeReady Mortgage product which is designed for low- to moderate-income borrowers, including singles, who may not have enough saved for a large down payment.

When considering a downpayment assistance program, it’s important to compare the costs and benefits of each program.

Some programs may require that you live in a certain area, or meet other requirements such as having children attending school within a designated district.

If you’re not sure which one is best for your needs, be sure to speak with an expert realtor who can help find the right program to suit your needs.

Get Expert Sales Advice Today!

Northwest Realty Group is committed to making sure you are living your “happily ever after” in your dream home. 

We’re here to help you make home buying and selling an easy and enjoyable process from start to finish. 
Our agents will work closely with you every step of the way so you can have peace of mind knowing that we’ll be there for any questions or concerns you may have. If you want to buy or sell property, then contact us today at 702-677-0039!

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