Want to buy a house without a spouse? Or maybe without anyone else helping you? Can it be done? Should it be done? How hard is it really?
Surprisingly enough it's actually a growing trend for single people to be purchasing real estate. Also, many of these single purchasers are not men. Several decades ago it was a rare thing for a single woman to buy real estate on her own. Before the Fair Housing Act in 1968, few women could actually even get approved for a credit card much less a mortgage. But today, all that has changed and the NAR (National Association of Realtors) states that since the mid-1990s, single women have bought real estate at nearly twice the rate of their single men counterparts. Single female homeowners made up 18% of the household composition in 2014 alone, Compared to just 10% for single men.
It comes down to education and a little bit of a leap of faith finding the confidence needed to begin the home buying process. Making homeownership a reality is not as difficult as it seems to be or as it once was.
We have to start with the funds. Do you have enough money in order to make the purchase? First-time homebuyers might find it difficult to make a 10 or even 20% down payment but with 3.5% FHA loans, USDA loans with little to no down payments or creative financing, it's easier than ever to purchase a home you truly can afford. Mortgage lenders do like to see a little bit of money in the bank and appropriate spending strategies over the last year or two. Having all of your W-2s, bank statements, and decent credit score help to guarantee a home loan approval. A good rule of thumb is to not have the home's principal balance, interest, taxes and insurance not exceed 30% of your net income.
If this is your first home you want to be realistic about your goals and your needs. Just because this is your first time doesn't mean it needs to be your dream home. It's always best to start off small, gain some equity and then move up in 5 to 10 years or even sooner depending on how quickly the equity grows in your property.
Also, don't forget to shop around for mortgages and the best rates. Finding a real estate agent that helps you to the process, answering questions as they come up and making you feel confident in your purchase all makes the process that much easier.
It certainly is not impossible for a single person to purchase real estate and it's a great idea especially if you're younger to invest now, gaining equity and experience to prosper your portfolio even further in the future.
For more information on purchasing a home, first-time home buyer tips or real estate throughout Columbus Ohio please give me a call today.
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