Buying a home is SoCal can be an incredible investment, and a wonderfully exciting experience. From achieving the American Dream of home ownership, to getting a foothold in the real estate market, to laying the foundation for your financial future, buying a home in SoCal has countless benefits.
So, if you’re planning to buy a home in SoCal soon, we tip our hat to you - particularly if you’re buying a home as a single person.
Buying a home as a single person can present a few unique challenges that couples, siblings, spouses, or others may not experience. That’s because all of the financial responsibility will rest on your shoulders.
Some of the challenges of buying a home as a single person may include:
Saving for Your Down Payment
Homebuyers with two incomes may find it easier to set aside more money for their down payment than single individuals. Some sources seem to suggest that it can take twice as long for single individuals to save for a down payment. But this is not always the case of course, as your income, spending habits, and debts will largely dictate how much you may be able to save.
Ensuring You Have Adequate Reserves
When you purchase a home, lenders will want to see that you have additional liquid capital (accessible cash), above and beyond your down payment. Setting aside this money, in addition to saving for your down payment can be challenging on a single income.
Maintaining Excellent Credit
When two or more people buy a home together, all credit scores are reviewed by lenders. As a single person buying a home, your credit will be the only credit score that your interest rate will be based upon. For that reason, it’s important to have a great credit score, with plenty of available credit, and payments.
To begin the process of buying a home as a single person, there are a few simple steps all individuals should take before falling in love with a specific home.
First, meet with an experienced, top-rated mortgage broker
. The best Southern California mortgage brokers will have great reviews online, will be willing to guide you through the process of buying a home (even if you can’t buy for a few years), and will provide you with goals for savings, estimates of how much you can afford, and potential loan products suited to your needs. Next, together with your mortgage broker, decide how much you’re comfortable spending on a mortgage payment each month. This will determine how much you will need to have for a down payment.
After you’ve met with a top-reviewed mortgage broker, you’ll be in a great position to look for ways to save each month, pay off other debts to boost your credit, and have a plan in place for buying a home when the time is right.
There are wonderful first-time loan programs available, whether you’re buying a home with someone else, or on your own. At Summit Lending, we are proud to be a top-rated mortgage broker, and a direct lender serving Southern California. Please contact us today for a no-cost, no-obligation consultation today.
With offices throughout Southern California, Summit Lending is headquartered in Huntington Beach, serving all of Orange County, Los Angeles County, Riverside County, San Diego County San Bernardino County and Ventura County.
We are able to provide fast loan approvals, quickly answer your questions, and secure the best mortgage loans with the best rates available.
Our dedication to exceptional customer service has earned us top reviews online, as a trusted full-service mortgage broker and direct lender.
Please call 888)-451-9006 or contact us online for more information.