Buying your own home is a fantastic achievement whatever your age or gender. You’re leaving behind the so-called ‘dead money’ involved in paying rent and are investing in your future security. However, for single women in the modern world, it can also be seen as one of the strongest statements of independence. Whether you’ve established yourself in a successful career, are looking for a clean break after a relationship breakdown or have been savvy with your savings, this next stage of your life is both exhilarating and challenging. Here are some of the most important factors to consider before making the decision to buy your own home.
Know That You’re Not Alone
According to research by the National Association of Realtors, single women were the most common type of homebuyer after married couples in 2018. In fact, 1 in 5 of every person buying a home in the US is a single woman and twice as many single women are buying homes than single men. If nothing else, these statistics should reinforce your self-belief that you absolutely can own your own home.
Do Your Research
Buying a home is a complex process with a lot of ups and downs so it’s best to know as much as you can about what’s coming before you begin. Of course, the internet is a treasure trove of information, and lots of mortgage lenders and realtors will provide free advice to an extent. However, for a more comprehensive understanding of what’s involved, you may want to book yourself on a HomeFree USA course which provides education on homeownership.
Consult the Professionals
To find out how much a mortgage lender will offer you, your next step is to qualify for a mortgage. They will look at your current employment, salary, financial commitments, and your credit history to assess if they will approve you and how much you could borrow. Working with experienced realtors and lenders will help to keep problems to a minimum and can answer questions when you have them. Buying a home is a financial commitment but can also be an emotional time, so you need to feel comfortable and confident in whoever you choose to work with.
Look at Your Own Budget
While the lender will take your biggest financial commitments and assets into account, they won’t necessarily understand your day to day lifestyle costs. Do your own calculations and make sure you don’t commit to repayments which are unrealistic. Think about the future and any unexpected costs you might have to deal with; will you still be able to pay your mortgage?
To keep your mortgage costs as affordable as possible, you may want to consider alternative properties to the traditional house or apartment which are more affordable. For example, tiny houses are becoming more and more popular with single people and couples looking to lead a more minimalist and eco-friendly lifestyle. These small homes have the added benefit of being easily relocated, so you aren’t tied to one place if you decide to move on. Visit the Tiny Heirloom website to find out if a teardrop camper or a tiny house could work for you.
Consider the Future
Home prices can be unstable and the home you buy today may not be worth the same amount of money when you come to sell it. If you’re planning to be in the house for the long term, then it’s likely you will see a return on your investment. However, if your financial or personal circumstances change, do you have a plan? You may need to sell earlier than planned or possibly rent it out.
Save as Much as Possible
Any new homeowner needs to have an emergency fund put by, but when you’re a solo homebuyer, this becomes even more crucial. This fund is not only a safety net should you lose your job or become too unwell to work, but also protects you against unexpected home maintenance costs. When you own your own home, you are responsible for the costs of broken heating, plumbing problems, etc.