If you or your family live on a single income, it may seem like homeownership is out of reach, but don’t fret - it’s still possible! If you’re hoping to buy a home, we’ve outlined a few tips on how you can do so and manage your expenses on a single budget.
Build Credit and Minimize Your Limit
Building and maintaining a good credit score will go a long way when it comes time to purchase a home. However, don’t be fooled- just because you have a high credit limit doesn’t mean you will be eligible to buy a home. Lenders will look at a $10,000 credit limit as if you have $10,000 you can rack up in debt. Lowering your credit limit to $2,000 will have much greater appeal to lenders.
Only Buy the Necessities
Overborrowing can prove detrimental to new homeowners. The down payment alone can distress potential homeowners. Buying only the necessities is a perfect starting point for saving towards a home. Don’t eat out every day, start a loose change jar and pay down any debts as soon as possible!
Research Before You React
Be sure to research everything prior to securing a loan. First, figure out how much you can afford by getting preapproved with a Union Home Mortgage loan officer. Once you’re preapproved, research the home you want to buy. You’ll want to learn everything about the home and be able to forecast future repairs or payments before securing a mortgage.
While it might seem like homeownership on a single income is out of reach, it’s still possible! Crunch the numbers, ensure your credit is in good shape, save money and research your options before shopping for a loan. Contact a mortgage professional today to start your homeownership journey!