Let’s face it: not everyone wants to get married and have kids. Other people may have experienced relationships that just didn’t work out and remain single. One of the biggest milestones married couples embark upon together is home ownership, but what about single people?
You’ve probably heard that renting is essentially throwing your money away on a monthly basis, but is that really the case? If you’re single, should you own a home? Here are some reasons to postpone homeownership:
If you are deep in debt, you’re not alone. Student loan debts, car payments and credit card bills plague millions of Americans annually. Before obtaining a mortgage, reduce your debt-to-income ratio as much as possible to ensure that you obtain the best rates. When you are in debt, not only will you have a harder time being approved for a mortgage, your rates will be less than ideal and your interest rates could be high.
Iffy Job Security
If you don’t plan on staying in your current job for at least two years or are concerned about your job security, you probably shouldn’t buy a home. If you lose your job, you could miss your mortgage payments, which will impact your credit. Unfortunately, too many people are forced into foreclosure when they cannot make mortgage payments. Wait to purchase a home until you have more secure employment.
In a worst-case scenario, having bad credit could prevent you from obtaining a mortgage in the first place. Even if you are able to procure a loan, the interest rates could be incredibly high. Wait until your credit score improves before buying a home.
No Money For a Down Payment
You’ll need to save at least five percent of your home cost for a down payment, but we recommend saving 20 percent in order to obtain the best mortgage rates. Start saving today to purchase your dream home in the future.
You Move Around
If you tend to move around every few years, wait until you feel settled to purchase a home. When you own a home, you want to live in it for five to seven years, so make sure you are ready to commit to making a purchase.
If none of these reasons apply to you, you may be ready to purchase a home. Our independent mortgage brokers in Scottsdale have worked with single first time home buyers for years, and we would be happy to help you. Our salary-based mortgage advisors shop around a wide variety of financial institutions to ensure you get the best mortgage loan rates.
Just because you’re single doesn’t mean you can’t own a home. By paying off your debts, budgeting and saving money, you can own a home. Although it’s easier to buy a home when you have combined incomes, it’s not necessary. Our mortgage advisors make the entire loan process as fast and easy for you so you can move into your dream home as soon as possible. Contact Scout Mortgage today to get started.