Advice for Solo Homebuyers
According to an analysis of first-time homebuyers released by Zillow in 2015, “First-time homebuyers are older and less likely to be married than they were in the past.”
This shouldn’t come as a big surprise, since we’ve seen that Millennials—even those who are making this purchase with a partner—are opting to save for a home in lieu of saving up for a large wedding. Many are also looking at buying a first home as more of an investment than a first step toward settling down.
Much of the advice geared toward single homebuyers is basically the same advice you’d hear whether you are single, married, have kids or don’t have kids: e.g., shop around for a good mortgage rate, make sure you can afford the monthly payment, don’t forget to account for the additional expenses that come along with homeownership etc.
However, there are some unique considerations single homebuyers may face, so here, we’ll take a look at those as well as advice from the experts.
Coldwell Banker agent Jessica Edwards tells Time Money, when buying a house on your own, be sure have a trusted friend you can talk to about this big decision. Everyone will have advice, and that can be overwhelming. Having one or two people you can run your decisions by, who will tell you if it sounds like a good idea can be extremely useful. We all know what it’s like to have a million different scenarios swimming around in our heads. You’ll need to find a way to sort through all of them.
Up to this point, as a single, independent person, you may not have had much “tying you down.” Becoming a homeowner changes that. Realtor.com reminds singles buying a home to think about what may be ahead for them down the road. A home is a long-term investment, so think about whether the home you choose will still work for you five or ten years down the road. Are you planning to stay in this area for a while? Could there be any additions to your family in that time? You may not know exactly, but trying to get out of a mortgage just a year or two later means you may not even recoup the costs you spent on closing. Consider whether the home you’re purchasing would make a good rental property, in case you do have a big change and decide not to stay in it.
Finally, be sure to take advantage of programs for first-time buyers in your particular financial and personal situation, whatever that may be. Most states have programs to help you on your way to becoming a homeowner. For example, the My First Texas Home program offers special mortgage assistance for down payments and closing costs to Texas homebuyers. You can also find resources for first-time homebuyers from the FHA, which aims to expand homeownership opportunities and lists available resources for homebuyers by state on their site.
The first step you make toward buying a home should be to talk to an experienced mortgage lending expert. They can help you determine how much you need to put down, your monthly payments and the best type of loan for you. Visit Lone Star Financing today to talk to an expert!