5 Basics You Need to Know When Buying a House As a Single Woman
By Gloria Martinez
Buying a new house can be an exciting, nerve-wracking experience. After all, you’re going to be spending a suitable amount of time in it and you’re going to want to make sure it’s the right house for you. Data from the National Association of Realtors shows that almost 20 percent of houses are bought by single women. There are a few hurdles to overcome in house hunting. If you’re a Millennial or Gen Z woman hoping to buy a home on your own, Audacity Magazine & Events offers the following information on five basic rules you need to know.
1. Know what you can afford
First off, know that buying a home on a single income is possible. The first thing you’re going to want to do is save for a down payment. Typically most down payments are 20 percent of the overall home cost. In Atlanta, the median home sale price currently sits at $335K, meaning a 20-percent down payment would be $67,000. Of course, most Millennial and Gen Z women don’t have that kind of cash set aside. If the cost of living makes saving for a down payment difficult for you, the Federal Housing Administration (FHA) loan can help, since it only requires a 3.5 percent down payment.
You also could consider a fixer-upper, as they are more affordable. Even house shopping during a specific time of year can make a difference. An article in USA Today recommends comparing renting to owning and assessing mortgage, homeowners’ insurance and maintenance costs. Even if the mortgage payment is cheaper, you still might end up paying more than if you were renting.
2. Assess your finances
Check your credit report, as all lenders will be looking to see if you’re a risk. Minimize your credit card debt as much as possible, and avoid making any large purchases before going to a lender so as not to hurt your credit score. Calculate the overall cost of your home based on your annual income, the down payment, what your monthly costs will be, the loan type you’re using, and average annual percentage rate (APR) of loans.
This can take some time, so get familiar with tracking your spending. You don’t have to set up a budget that will account for every penny, but looking at what you spend on a regular basis will help you know where your money goes and what your monthly costs already are. Some banks have services that track your spending for you that you can see online, so take advantage of that.
3. Consider insurance
Make sure you have adequate insurance, and that’s not just homeowners’ insurance. You’ll also need health, life and disability insurance. Insurance can protect you in case you have an accident and can’t cover costs. Mortgage protection life insurance can help you if you become unable to work and cover your costs. If you get married, you can protect your property with a prenuptial agreement or continue to keep the house entirely in your name.
4. Consult some experts
A real estate agent can always be a good source to help you understand what you’re getting into. Consider also consulting a financial advisor to help you set goals for your future and what you want from house ownership. A financial advisor doesn’t have to cost you a fortune. Try visiting with one for just a few sessions so you can get a good idea of where your finances are at and what your next steps should be regarding home ownership.
5. Make your move smooth
Once you’ve bought a house, take some time to plan out how you’re going to make the move. You might want to paint the house before moving in as a small way of making it yours. You’ll need to declutter and make sure you’re not bringing any unnecessary items to your new house as well.
A new house can be a fresh start. As long as you consult some experts and understand your financial situation, you’ll be in a good situation. Take your time. You’ll be able to achieve what you want by using these smart home-buying strategies.
This is just one of many helpful articles for Millennial and Gen Z readers from the Audacity Magazine & Events team. To stay up to date on inspiring ideas that will help you get the most out of your personal and professional life, check out our Zine and keep an eye on our upcoming events!
Meet the Writer
Gloria Martinez loves sharing her business expertise and hopes to inspire other women to start their own businesses and seek promotions in the workplace. She created WomenLed.org to spotlight and celebrate women’s achievements.
