Buying a home without a co-borrower may seem a little out of reach, but it is possible! Research done by Freddie Mac shows that 28% of all households (36.1 million) are owned by one person, and this number is growing. Did you know that over the past 40 years this number has nearly doubled?
“Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households”, says Freddie Mac.
Below we have listed three tips you should follow if you are looking to buy a home without a co-borrower.
1. Know Your Credit Score
Buying a home by yourself means lenders are focused solely on your income, finances and credit history. “Lenders will be looking at just one credit profile: yours. Needless to say, it has to be in great shape. It is always a good idea to review your credit report beforehand, and this is especially true of solo buyers”, says Investopedia.
Knowing your credit score and what is changing it is very important as it will determine if you can get a mortgage, and how much you qualify for. You can pull a free copy of your credit report once a year from AnnualCreditReport.com or Experian. We encourage you to review your report and resolve anything that impacts your credit negatively. Are you a first-time homebuyer? Check out this blog for more details on why your credit score is so important.
2. Research Down Payment Options
It’s important to look at what down payment options are available, including your personal savings, gifts from family members, and down payment assistance programs if available in your area. This will give you a better idea of how much money you will need to save for that home you’ve been eyeing. “Buyers should discuss their program options with their loan officer and real estate agent to make sure they choose the program best suited to their personal needs” says Rob Chrane, CEO of Down Payment Resource.
3. Think About Your Future Home and Your Needs
When becoming a homeowner comes to mind, you should think about what you want in a home. Do you want a large yard for your dog to play in, or maybe you want an extra bedroom for your home office? When you are looking for a home, consider your lifestyle to determine what you want and need in a home. If you go into the office a lot, being close to work may be very important. However, if you work from home and rarely appear in office, the location or distance from your workplace may not be a high priority. If you have dogs (pandemic pups or not), a large yard or local walking trails might be important.
Having a trusted Mortgage Banker by your side is vital during this stage. Not only can they help you find the right mortgage for you, but they can also help you balance what you want in a home and how much your monthly costs should be. This will ultimately help you determine what type of home is best for just you.
Bottom Line
Being the sole owner of a home can seem daunting, but you are not alone in this venture. Not only is the single homebuyer trend growing, we’re also here to help you on your journey. Before you start looking for a home, it’s important to know your credit score, look over all the down payment options, and think about your current and future home needs. Connect with our team today to get started on your homebuying journey!
Topics: Mortgages, Credit Score, Mortgage Banker, Down Payments, Credit Report, First Time Homebuyer, Homebuyer Tips, Housing Market, Buying a Home, Homebuyer, Buying Home During COVID-19, Mortgage for Millennials, Credit Approval, Pandemic Home Buying, Saving For A Down Payment, Sole Person Household
