Don't think that you can buy a home because you're single? Think again, because 25% of homebuyers are actually single adults. A single person may have different priorities than someone with a family that is buying a home, so follow these tips to ensure success with your purchase.
Use Your Mortgage Approval Amount as a Guide
Your mortgage lender will determine how large of a loan they are willing to give you with a formula. The formula is very basic, and uses information such as your existing debts, current income, and credit score. The formula does not account for how much money you spend day-to-day, which can include things like shopping and coffee.
Without any additional income from a spouse to fall back on, you should only use your approval amount as a guide. Beware of looking at homes that are priced towards the high end of the approval amount, since you could run into issues with your budget when you add in all your other expenses.
Consider the Resale Value
Always think about how easy or difficult it will be to sell the home down the road. You do not want to pick a home that works great for a single person when the other 75% of buyers are families. It limits the appeal of who will buy your home.
For example, you must consider the neighborhood a home is in before you purchase it. As a single person, there may be things that are not on your radar concerning a home. Things such as the local school district and nearby parks may be not be a concern to you now, but they could be for potential buyers when you eventually get ready to move.
Another factor that can boost the resale value is access to public transportation. You may drive your car to work right now, but a potential buyer may be willing to pay more for a home that is near the train. This can make your home appealing to a whole new group of buyers if you pick the right location.
Think About Future Plans
It's possible that the home you purchase now could be the future home for a family, which is why you should avoid picking a home that only makes for a great bachelor or bachelorette pad. Consider how many people could be living in your home when you are ready to start a family. Two bedrooms are enough right now, but will you need three or four? At the very least, start thinking about what would make a good starter home for a family instead of for just yourself.
A local real estate agent can help guide you with more advice for buying your home.