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YahooA singleton is a single person as compared to those who are part of a couple. When a singleton purchases a house he or she faces special challenges. The first of which is that a singleton has only one income. The upside for a singleton is that one person (you) makes all the choices, but the downside of life as a singleton is you face all your housing problems alone.
The main problem a singleton faces when buying a home is falling in love with a property. And since a singleton is solo, the chances of a singleton overpaying is much higher than for a couple. Who is going to dissuade a singleton from purchasing what his / her heart desires? Not many people can, so singleton’s beware of this danger, and avoid it.
Increase your FICO score. The higher your score the better the rate you qualify for. Begin by reviewing your credit, and then proceed to pay off your credit cards.
Have a 20% downpayment. If you are planning to buy a house for 300K, a 20% downpayment would be 60K. If you put down less than 20% you pay for private mortgage insurance (PMI). This increases your mortgage payment.
Obtain a good salary, if you don’t already have one. Banks have become conservative about how much money you can borrow. The general rule of thumb is that 28% of your gross income (that’s your income before taxes are taken out), can be used to pay your mortgage. Your mortgage is the sum of principal, interest, real estate taxes and insurance.
Reduce your debts as much as possible. Banks won’t give you a loan unless your debt payments are modest in comparison to your income.
Set aside money for closing costs. Closing costs can be anywhere from 3 to 6 percent of your loan. Closing costs consist of a lot of garbage fees which singletons have to pay by themselves.
Get pre-approved vs pre-qualified before you go house hunting. This will streamline the housing process for you, and you will be able to snap up a good deal when you come across one.
Find a real estate agent to help you navigate the purchase process. Negotiate how much of the commission the real estate agent should give you back. As a singleton, you find and purchase your property expediently. You should be rewarded for this fact by your real estate agent.
Be assertive about what you want in your house or condo. The real estate person’s raison d’etre is to meet your housing requirements whatever they may be.
Make an offer, and go into escrow. Your real estate agent will walk you through the process.
