Buying a home is one of the biggest financial decisions you can make, and the purchasing experience can vary greatly depending on whether you’re embarking on this journey as an individual, as a couple, or as a family. While the traditional path to homeownership usually involves a married couple sharing the financial burden of a mortgage and the emotional weight of a “forever home,” more and more individuals are choosing to purchase a home on their own. Whether due to financial independence, personal preference, or life circumstances, buying a home as an individual can carry its own set of challenges and rewards.
Your Choices Are Your Own
Entering the real estate market as a solo buyer gives you an element of control. You can focus on finding a home that suits your personal tastes without worrying about the preferences of others. Janine Serisy, founder of Black Girls in Real Estate, explains how buying on your own can provide you with greater flexibility in your choices. “You might want a condo or a townhouse or a home that requires easier maintenance,” she says. “You may not be buying with a spouse or children, so you might be looking for fewer bedrooms, less yard space, and perhaps an urban market for nightlife.” The beautiful thing about buying as a single person is that you can focus on what you love and how much you want to spend.
You May Need to Be Flexible About Location
Serisy clarifies that while it’s not necessarily difficult to qualify for a loan as a solo buyer, you will need to qualify based solely on your income and credit history. Not only can your income dictate the price of the home you can purchase, but it may also limit you to certain cities and markets. While single buyers might love living in high-priced markets such as New York and Los Angeles, only those belonging to certain income brackets will be qualified to purchase the perfect space for them. Buying a home on your own can be quite a challenge. You may have to be flexible about the zip codes and neighborhoods you want to live in when comparing homes based on your needs.
Take Time to Find a Mortgage
Teresa Raymond, a real estate agent at TN Smoky Mountain Realty, states that getting pre-approved for a mortgage “increases your financial appeal as it shows you’re ready to buy with a solid plan.” However, this doesn’t mean you should rush the process. Raymond adds that most first-time homebuyers are not aware that they should shop around with banks for a mortgage. This can be particularly true, as solo buyers may get different terms, rates, and maximum loan limits from different banks. So, don’t underestimate the importance of this significant step. Take the time to explore various financing options and ensure you find the best fit for you.
Budget for Everything
Raymond asserts that budgeting for a home is about thinking beyond the immediate purchase. “Not having a spouse means you’re the sole person responsible for paying all the bills,” says Raymond. Solo buyers should additionally ensure they can cover expenses such as insurance premiums, maintenance costs, housing fees, or home warranties in addition to the mortgage after the purchase of the new home.
Don’t Fall into the Trap of Extras
Buying a home can be an emotional process that stirs up a lot of feelings about what you think you want versus what you truly need. For example, while a family may see a large yard as perfect for young children, for individuals it might seem like a heavy maintenance bill or too much time spent gardening on weekends. Even custom kitchen appliances might not be worth the retail price if you always eat out or have little interest in cooking. It may turn out that some of the luxury upgrades or home features are not truly ideal for some individuals, and their price may not actually be worth it in the long run.
Consider
In Buying Income-Generating Property
If you are more interested in real estate for financial return rather than a lifestyle change, there are various ways you can go about it. For example, Circe believes in “buying income-generating properties first so you don’t have to choose between a starter home or a permanent home.” Income-generating homes are usually multi-family homes with apartments or rooms to rent. If you buy a property you can live in and rent out, you may receive a significant portion of your mortgage covered by tenants and roommates.
You Don’t Have to Go Alone
As mentioned above, buying a home on your own is not just a significant financial task, but it can also be an emotional drain. However, just because you are not purchasing with someone else doesn’t mean you can’t seek help along the way. Friends and family can be great resources – especially if they have already gone through the home-buying process. Don’t hesitate to ask for help when you need it and call on a trusted friend for a second opinion when you want it.
Source: https://www.realsimple.com/things-to-know-before-buying-a-home-alone-7112845
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