Single mortgage applicants are becoming very common. More single people are investing in their own home and because there is only one person to assess, the mortgage process can even be simpler. So do not feel daunted. Becoming a homeowner as a single person is entirely doable.
In this edition, we will tell you all you need to know about being a single-applicant mortgagee and the different factors to consider when getting a mortgage on your own.
Tip No. 1: Do not ‘Go (too) big!’
Consider how much space you need as a single homeowner. Look for smaller houses with one or two bedrooms and one bathroom. Having a more manageable space will also reduce your costs and bills. At TTMB we have from time-to-time, a Property For Sale listing on our website which can provide some really good options. Properties on this listing are sold at Market Value.
Tip No. 2: Improve your credit profile
Your credit history is very important. Focus on your credit profile before you try to get a mortgage loan. The Automated Credit Bureau (ACB), where all mortgage lenders are subscribers, is a credit reporting agency that allows other lending agencies to access your credit history/profile from each of the other member subscribers. They can track you, so, you will need to pay all bills, including your credit cards bill on time. Check out our Avoid – Disregarding Your Credit Rating for further insights.
Tip 3: Think about making a comfortable downpayment
Down payments can be tricky and saving for one can be difficult. But if you can put down a substantial down payment towards your home, your monthly payments will be lower, and you can even have a nice chunk of equity in your home.
You do not want to become ‘house poor’ and struggle from month to month to meet your monthly payments.
Tip No. 4: Beware of big mortgages
Just because a lender will approve you for a larger mortgage does not mean you should dive in and accept it. Remember, you alone will be carrying the weight, so be extra cautious about the size of your monthly mortgage payments. This way you will be able to plan ahead and budget your spending accordingly.
TTMB’s online mortgage calculator is very useful and will show you different rates and different monthly payments that you can potentially qualify for. Use it to get an estimate of how much your monthly mortgage payment could be as well as, how much you could qualify for based on your income, age and debt. Read How to Pre-qualify for more information.
Tip No. 5: Consider a co-signer
If bad credit or other issues are interfering with your dream of owning a home, consider adding a co-borrower to your mortgage, whether or not they intend to live with you. Co-signing or getting a loan is a great option. Once you have come to a reasonable agreement, crunch the numbers, and determine that you’ll all be able to make the budget work, then go for it!
