Buying a home as a single parent can be challenging. Right now, it may even seem like an impossible dream. However, single homeownership is on the rise and single-female homeownership is actually outpacing the rise in single male homeownership. What’s more, 38.4% of homeowners are single, highlighting an improving economy and buyers’ willingness to look for alternative options for overcoming rising housing costs.
Here are just a few ways you can join the ranks of single homeownership, regardless of your current financial situation.
1. Save, Save, Save
The first step and best way to buy a home is to save your money. You’ll want to make the largest downpayment you can afford to minimize interest and saving can help you do just that.
Begin by cutting unnecessary spending. Instead of frequenting the local coffee shop, brew your own joe at home. Forego bowling or the local arcade for a game night at home with friends. Start slow and continually question whether or not your everyday purchases are essential. Remember your goals and prioritize them and, eventually, you’ll begin to see your savings account grow.
2. Create a Monthly Budget
Creating a monthly budget will also help you stay on track and achieve your savings goals. Access your banking statements online and take an honest look at your finances. Download a spreadsheet of your account or use an app to help you categorize your spending. Then, create a budget that will help you reach your goal to own a house.
A budget won’t work unless you stick to it. Keep yourself on track by using cash only to make your purchases. If you manage to stick to the budget, reward yourself with something small at the end of the month. Celebrating those little milestones will motivate you as you work towards your dream.
3. Pay Down Debts
In addition to saving, you should also prioritize paying down your debts. Whether they be from student loans or credit cards, your total debt should account for less than 43% of your pre-tax income. Use a debt-to-income calculator to determine this percentage, then make a conscious effort to minimize it.
The quicker you pay off your debt, the less you’ll pay in interest, thereby saving you more money in the long run. Plus, you may be able to raise your credit and qualify for a better mortgage loan.
4. Apply for a Loan
Single moms often have a more difficult time qualifying for some mortgage loans. However, there is still hope for those looking to get a home loan
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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