Purchasing a home as a single buyer is a financially savvy move. Not only do you have the opportunity to make all of the home-buying decisions, but you will also be able to increase the value of your financial profile and build personal wealth. Here are a few pieces of advice to assist you.
1. Make sure your credit report is accurate, and check your credit score with all of the credit reporting agencies. If you need to increase your score, work on making all of your payments on time and eliminating some of your credit. Your creditworthiness will determine the optimum interest rate and terms that you will qualify for.
2. Look at your debt-to-income ratio. Your lender can help determine if you are carrying too much debt relative to your income. Start paying down your debt if your ratio is deemed too high.
3. Whether you are seeking an FHA or a conventional loan, you will need a down payment and closing cost funds. Commit to setting aside a percentage of your income to build the largest amount of down payment reserves that you can.
4. Home ownership typically costs more than renting. Determining your budget ahead of time will give you the cushion you will need for home repairs and maintenance.
5. Make a list of what you must have in a home. You should also decide what kind of home you want. For example, do you want a detached single-family residence or a condo? Your real estate agent can help you with these decisions.
The success of buying a home by yourself also lies in having the right lender to take you through the preapproval process. Please call or email me today so I can assist in making it happen for you.