Buying A Home As A Single Parent And What You Need To Know

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Buying A Home As A Single Parent And What You Need To Know

Being a single parent is taking on the job to care for and provide entirely for your kid/s even though it was not meant to be this way. Economically speaking, the cost of raising a child is most often than not only manageable when two or more incomes by two individuals are used. When you’re alone with all those expenses it’s a lot harder to make ends meet, moreover, it’s a lot harder to save up enough to be able to purchase property and buy you and your child or children home.

It may be daunting, how the whole purchasing a home ordeal is a lot harder for you than it would be for a couple or a complete family or even for a single individual who does not have any dependents, but, it is still possible. You can follow the process we’ve laid out below and consider it tips for your home-buying decisions!

Build up your Credit Score

When two people take out a loan with each other as a co-guarantor, it usually makes the application process easier – this is because if one has a slightly lower credit score, the high credit score of the second individual can more or less be a more sound basis for the loan’s approval. 

As a single parent, banks, and loan companies will only consider your credit score alone when you apply for a loan and when you apply for a mortgage plan. To make sure that this process becomes a seamless one, once you’re set on buying a home, give yourself a year or two before making the purchase. During the time you’ve given yourself, ensure that you are stabilizing your income and increasing your credit score as much as you can. Once you apply and they see that your credit score and your finances are more or less in order, you’ll have no problem with applying for a loan.

Financing Options

Before going for private loans or applying for financial help from banks to be able to purchase your house, check NGOs and other organizations within your area. Although unorthodox, it is quite common and almost all states have this, there are a few organizations that help subsidize the costs of purchasing a house if you are a single parent looking for a permanent home for you and your child. Ask for verified information by going down to your local information office to see if there’s a registered organization near you and contact them to get their support. These kinds of programs greatly cut down the costs of purchasing a house and you’ll find yourself saving up a lot.

Find A Trusted Co-Maker For Your Loan/Mortgage Application

You would most probably still be asked to have someone co-sign your lease, loans, and mortgage. We recommend as much as possible keeping it within your family or asking your children’s designated guardian should something happen to you. With this, you ensure that the one who will be signing with you will have the same mindset and have your children’s welfare in their best interests and help you ensure your home-buying becomes successful.

Save A Little Cushion Money

When purchasing a house, there will be a lot of costs that will come up that probably won’t be explained to you during the initial quotation. So, even if you’re allocating a budget for your purchase that is according to the realtor’s quote, it would be safe to stash a couple of thousand more in your bank and use it as sinking funds during your home-buying. As you buy your house, fees such as renovations, fixing of paperwork if you are buying a pre-owned house and the legalities weren’t smoothed over as well as other emergency expenses would require you to shell out money. 

By preparing cushion money in anticipation, you will not be caught off guard and will not be pushed into debt just to be able to purchase your home. If you don’t end up spending it then it’s still a good source of emergency funds for you in the future.

Final Thoughts

Even for those buying a home with a partner, finding the right home takes time and is a rigorous process. Be patient, do your research, don’t rush into anything, and employ the help of those around you if you need support – just because you are a single parent, doesn’t mean that you need to undertake such a big decision-making process by yourself. By following these tips, single parents can successfully navigate the home-buying process and find the perfect home for their family. It may require extra planning, research, and work but it is worth it to have a place to call your own.

By | 2023-01-31T20:19:00+00:00 January 31st, 2023|Uncategorized|0 Comments

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