Homebuying isn’t only for dual income applicants. It’s possible and reasonable to buy a home as a single parent. If you are ready to buy a home today, contact a team member! Checkout these useful tips that will help make homebuying easier for single parents.
Tip #1: Research Local Home Buying Assistance Programs
There is an array of programs with the goal of making homebuying possible. Research your state’s and city’s housing agencies to learn which programs may be available for you. Many programs help with down payments costs, closing costs, etc. Working with a trusted loan officer can help you discover programs that may benefit your homebuying journey too!
Start the process today by contacting one of our loan officers!
Tip #2: Create a Budget
One of the best things you can do is to start by creating a budget. You want to have a clear and straightforward idea of what you can afford. You will want to consider your income and monthly expenses with, and without, a mortgage payment and related expenses. When considering mortgage expenses, be sure to consider:
Consider conducting market research, and then use our online mortgage calculator for a ballpark idea of what your monthly mortgage may cost.
Tip #3: Sort Out Your Credit
Credit scores are a huge consideration in your mortgage payment and interest rate when buying a home. The better your credit score, the more likely you are to get a more appealing mortgage rate, and loan terms. It is important to do what you can to raise and improve your credit score prior to homebuying- this could potentially save you a lot of money.
There are many things you can do to improve your credit. For starters, review any errors on your credit report, make all payments on time, pay off as much outstanding debt as possible, and do not open any new lines of credit. You can read our blog for more tips on how to improve your credit score.
Tip #4: Shop Around for a Lender that Best Suits You
When it comes to mortgage loans, every lender is different. Lenders will offer different mortgage products, rates, terms, etc. Make sure you find a lender that is the best for your needs and, in addition, one that you can trust throughout the process.
Finding a lender you trust will allow you to stress less, knowing they will guide you towards the best financial options for you. Direct Mortgage Loans recently created Lock and Look, a loan product to assist homebuyers in today’s market conditions. This will allow borrowers to lock in the current interest rate (up to 45 days), and then go house hunting. If interest rates rise, the locked in lower rate will still be rewarded when it comes time to close on the new home.
Tip #5: Decide Your Home Essentials Prior to House Hunting
Finally, it is important to know what you are looking for prior to home hunting. How many bedrooms do you need? Is a backyard a priority? Do you want a pool? Knowing this ahead of time will help you find a house that fits your family’s needs.
It is important to note that some aspects of a home can be changed, but others cannot. If you dislike cabinets or doors, you can update them later. However, if you dislike the location of the home this can never be changed. It may be helpful to make a list of your must-haves and dislikes ahead of time. This will also help your Realtor! Here is a guide on determining needs and wants.
To become comfortable and confident going into the homebuying process, consider enrolling in our free video course on homebuying. This course lays out everything you need to prepare, and know, during the process of buying a home. In addition, many checklists and resources are available on the course. Sign up for FREE today!
