5 Top Tips for Single Homebuyers
The spring real estate market is heating up in Minnesota, and many homebuyers are spending their weekends touring open houses and putting offers in on their dream homes.
But not all buyers are sharing the home buying experience with a spouse or partner. An increasing number of buyers are single men and women. In 2013, single men represented 11 percent of home buyers in the United States. Single women represented 18 percent of all buyers. Increasingly, first-time home buyers are more likely to be single women.
Whether you’re a young buyer, single parent, or a recently divorced man or woman looking for a home to call your own, here are five tips for making the home buying experience work for you.
1. Do Your Research
Before you make the plunge into homeownership, do some research on the benefits of renting versus buying. Several online calculators can help you get an idea of whether it’s better for your budget to shop for your own home or continue renting. Often, you’ll find that though it may be a stretch to come up with a down payment, owning a home is an investment that will pay off in the long run.
The home buying process is complex and requires the help of several different professionals, including a Realtor®, mortgage consultant, home inspector, title company agent, and insurance agent. Get recommendations from family and friends on whom to work with.
2. Watch the Budget
A common home buyer mistake is purchasing a home for the full amount you’re pre-approved for. But just because you can take out a big loan doesn’t mean you should. Aim to spend about a third of your monthly income on your home, including your mortgage principal, interest, insurance, and repairs. If you can find a home that fits your needs for even less that’s awesome! If you’re pre-approved for $200,000, for example, look at homes that are below that top number, in the $150,000 to $175,000 range, so you don’t stretch yourself too thin. Remember these are guidelines, the important thing is to look at your budget and make an informed decision!
3. Find Down Payment Assistance
If you’re struggling to come up with the 20 percent down payment required for a traditional or conventional loan, work with your mortgage consultant to identify loans that require a smaller down payment or programs that can help you out with your down payment. The VA, for example, offers down payment assistance to veterans and some of their family members. There are many good conventional loan options at 5% or 10% down and FHA is only a 3.5% down payment. Here in Minnesota, MHFA has some great down payment assistance programs that are definitely worth looking into!
4. Be Self-Aware
Often, single home buyers receive a lot of advice—sometimes unsolicited—about what their property needs are, including the type of properties they purchase. Knowing your own mind and what you need and desire out of a property will help you narrow down your search. If you love to garden, you likely won’t be happy in a condo or townhome with little or no green space. If you love city life, finding a large home out in the country by mom and dad may not be the best choice for you.
5. Negotiate a Great Deal
Your Realtor® will help you negotiate a strong offer on the home of your dreams, but don’t stop at price. Negotiating on closing costs, needed repairs, and even warranties for your home’s mechanical systems and major appliances can help you avoid future expenses.
As a single homebuyer, it’s important to have a great Realtor® on your side to help with the search and the negotiation process. Contact Brooks Johnson, your friend in real estate, today.
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