Have you been thinking about buying a house, but you’re not sure where to start? Is being single holding you back? Read on to learn more about making the ultimate purchase.
Some of the challenges to buying a house are real: qualifying for a loan with only one income is harder, it’s more difficult to save for a down payment, and it takes longer to look at available properties. But some challenges (fear of moving and decorating your place; feeling overwhelmed with making so many choices) are not. Talk with friends, family, neighbors, and co-workers who have already bought homes. Take their advice to heart. You can do this!
The First Step
Before you begin any work toward purchasing a house, think about what you want. This is a huge financial commitment. Is owning a house really right for you? Do you want stability, or do you prefer flexibility? Are you staying in the same city or moving in the near future? What is it about home-ownership that is appealing? Is this an emotional decision or a financial one?
Research and Resource
Get advice from a variety of sources. There are many nonprofits that offer home buyer education, credit counseling, and other helpful information. Find out how to fix your credit rating, save for a down payment, and what to look for when house hunting.
Save as much money as you can to put down the largest down payment you can afford. A minimal down payment is at least 5%, but 20% is even better. In the long run, a larger down payment will save you money. Set aside money for emergencies, repairs, and decorating. This is especially important for a single buyer.
Talk to several banks, mortgage companies, and realtors. Interest rates and loan amounts can vary depending on who you talk to. Realtors can be a fantastic resource for you too. Find a realtor who works with first-time and/or single buyers and knows your price range. Depending on your income and size of your down payment, you may be limited as to what home you can purchase. Expect to spend more time searching and be ready to negotiate.
Work Toward Your Goal
There are some great tricks to saving money in order to focus your finances toward your goal of buying a house. The first step is to pay down as much of your debt as you can. Pay off credit cards and school loans. This will allow you to get a larger mortgage and better interest rate.
Each pay period, set aside a portion of your paycheck and live on the rest. Give up fancy coffees, going out to dinner, a new car, or a bigger apartment. Put the money you save into a separate savings account, not in your checking account. This will keep you from spending it.
Don’t Do It Alone
Buying a house may be stressful, so find people to help. Your realtor, loan officer, family, and friends can be a big support system. If you find a house you’re interested in, have someone come along to look at it with you. Get their unbiased opinion.
N.J. Lux Real Estate can make sure that you are never alone in the process of home buying. You can do this. Let us help you to make it happen!