Your single girlfriends who own their own place aren’t the minority. In fact, they’re part of a growing population of single female homebuyers rocking the market today. These women consistently outpace men in terms of solo homeownership and, since 1981, they’ve been second only to married homebuyers. How exactly are they doing it? In short, by purchasing affordable fixer-uppers. Men, on the other hand, don’t tend to purchase these kinds of homes.
Moreover, even while renting, they’re beginning to save up money by improving their budgeting strategies. While the process can be long, eventually, most women are able to save enough for a partial or full down payment. Additionally, women are taking the process into their own hands by doing their research. By learning about the market and the homebuying process, they’re able to make smarter decisions and finally score a place of their own they can call home.
The majority of single female homeowners are middle-aged women between the ages of 35 and 64. At this point in their lives, it’s likely they’ve found their career niche and have saved up enough money to afford a down payment or at least most of one. Furthermore, some of these women may be coming out of a divorce. These new singles may choose to use the money from the sale of their previous home to purchase a new one.
However, young single women are also purchasing homes by saving money and taking out loans. Sometimes, this entails taking a second look at your budget and finding ways to cut costs and save more. Even then, accumulating enough savings to afford a down payment may take a few years. However, it’s better to start now rather than later.
Take Out a Loan
Many single women automatically assume they won’t qualify for loans. While it is difficult to qualify for a bigger mortgage without a second income, there are still cost-effective options out there. Depending on your situation, you may have quite a few to choose from. You just need to know where to look.
If you are able to put at least 5% down, it’s probably best to stick with a conventional loan. However, if your credit score is low and you can’t put that much down, you may still be able to get a loan through the Federal Housing Administration or similar government programs. Moreover, you might also qualify for USDA or VA loans, both of which have flexible credit requirements. Therefore, it’s absolutely worth it to look into a variety of loans.
Purchasing a home for the first time can be incredibly daunting. Not only must you save enough money to begin the process, but you must also understand mortgages, loans, how to negotiate and a number of other components that come along with purchasing a home. All of this is enough to prevent some from taking the leap. However, women are beginning to educate themselves and learn the ins and outs of homebuying.
By learning about the intricate and, at times, intense process, single women can feel confident in their decision to buy instead of rent. Moreover, they will make smarter purchasing decisions and possibly score a great deal on a house. Thus, one of the best things you can do before deciding to purchase a home is to do your research and learn about the process as much as you can before diving in.
Do Your Realtor Research
As a young single woman, you may worry about securing the best deal. Will the real estate industry take advantage of you like the mechanic who tries to overcharge you for repairs? The best way to avoid an unfortunate situation is to find a realtor you can trust and who has been in the market for a while.
Shop around online and read reviews. It may also be helpful to speak with friends and family and ask for recommendations. They might also have some advice on realtors or companies to steer clear of. Once you find a broker you think you might go with, interview them in person. Ask them about their experience in finding homes for single women like yourself. Listen to your gut and, if you feel comfortable, ask them to be your realtor.
Building Wealth Through Homebuying
One of the main reasons single women purchase homes is to escape the risky renting scene. When you rent, you’re at the mercy of the landlord. You don’t know when your rent will increase, when terms and conditions might change or when maintanence will finally come to fix your sink. Plus, you’ll never see a return on the money you’ve put toward rent.
Purchasing a home, on the other hand, is an investment in an asset, and one that you will see some return on. Plus, if your home appreciates in value, you may even make a sizeable amount of profit off your home when you go to sell it.
Therefore, your best bet is to save as much as you can as quickly as possible and purchase a home. Of course, this is easier said than done, but your hard work will certainly pay off in the end. Plus, you’ll have a place you can finally call home.