Being a single parent is such a challenging task in itself that anything other than managing the house just adds more to the miseries. On the top of that, when it comes to buying a house as a single parent, the entire concept seems more dreadful. Since you are already dealing with a gamut of responsibilities single-handedly, investing in a house may become a bit arduous as you don’t have the privilege of double-income in your house. So, here are some of the tips curated for all the single parents out there who are contemplating to buy a house. Read on and implement them.
Determine Your Budget
Whilst buying a house is one of the best decisions to strengthen future financial situation, but the challenge is to purchase it without creating a huge hole in your pocket. Being a single parent, having a budget for everything is extremely important, whether it is about buying groceries or a huge house. Don’t take any decision in a jiffy. Create a proper plan and a budget for buying a house. Don’t forget that you also have several other things to take care of. Hence, don’t keep the monthly installments for a mortgage too high.
Buying a house becomes way easier once you are aware of your monthly expenditure and how much you can take out for the mortgage. But, buying a house isn’t all about churning out the money for its overall cost, however, you may even have to invest in its maintenance. Other than that, you must also keep other elements in mind. What if you lose the job? What if you fall sick? There wouldn’t be anyone to take care of your expenses, so plan accordingly.
Plan for the future
The entire notion of buying a house is so besieged that most of the times people don’t consider anything else than arranging the money. But, stop for a while and think, are you going to be single forever? What if you get married or engaged in the future? Or, what if your child/ren get married? How are you going to manage your home at that point in time? Would the current space of the house be sufficient to accommodate additional people? While you may not need the extra space right now, but it is recommended to ponder upon it for future. You can consider having an extra bedroom, or at least extra space to construct one whenever there is a requirement.
Also, think about your job. What if you would have to relocate because of it in the future? In such a scenario, make sure your house is easy-to-sell and churn out better money in return for your investment.
Sort Out Credit Issues
Buying a home is surely one of the most exhilarated decisions. Apart from being a significant investment, it makes you contented for you have a roof over your head and that too, of your own. However, most of the times, when it comes to buying a house, the credit starts creating some issues. So, if you don’t have a good credit history, it becomes difficult to obtain a mortgage, isn’t it?
No, not anymore. There are certain programs initiated by the government that provides you mortgage loans even if your credit history isn’t appropriate. These programs are even flexible in terms of foreclosure and bankruptcy.
Accessible through USDA and FHA, these kinds of loans let you build credit history through monthly bills that you pay, utilities, insurance premiums, and rents.
Also, since you are a single parent, it is always beneficial to be backed by trustworthy and knowledgeable people. Involve someone on whom you can rely on a decision as big as purchasing a house. That person would be able to guide you better.
Check for Safety, Security & Family’s Preferences
As much as you would think of the money while buying a house, your family’s preferences matter as well. By listing down their desires and wishes for a new house, you can not only save a lot of time but can also make them happy by selecting the one that would match their requirements. Make a list of some common aspects. For example:
- How many bedrooms should be there in the house to accommodate each family member?
- How far would be the hospitals and schools?
- Is the house in the vicinity of your workplace?
Since you are going to be away from your home to work, it is extremely important to ensure that the place is secure for your children. You wouldn’t want any mishap happening behind your back. If your children are old enough to understand, there is no harm to involve them and take their suggestions. Show a few options to them and see how they react to your choice. It’s not always that kids would be comfortable in shifting to a new and an unknown place altogether; hence, it is always better to infuse a sense of excitement in them.
So, gauge everything that you would require in your new home based on your family’s requirements.
Focus on the Cost Saving Things
While buying a house, the more you can save, the better. So, always be cautious of how and from where you can save a significant amount. You can seek help from the Federal Housing Administration (FHA) and the US Department of Agriculture (USDA) programs that help single parents to buy their own houses. If you are thinking to buy a house in a rural area, then you can avail USDA loans.
On the other hand, FHA would allow you to pay 3.5% as down payment instead of 5% if you haven’t owned any house for three years. However, FHA would demand more documentation and underwritings, which can be quite hectic.
Moreover, if you’ve been in the military, you can get a VA loan where you wouldn’t have to pay any down payment and can obtain other advantages as well. Still, you can cross-check with your local government to understand about these programs and their benefits profoundly.
Get in touch with a certified lender who is well-aware of these programs and it will be easier for you to get these things. Work along with your lender or agent and get the things done.