Being a single parent is challenging on many levels. As a single parent, you are responsible for everything, including paying the rent. Many single parents only have one income source, so saving when you can is important.
One of the biggest expenses you will face is rent. With rent prices soaring, it can make life difficult, to say the least. Instead of renting, single parents should consider purchasing a home. It is much cheaper to buy a home than rent one.
If you’re a single parent, you may think that homeownership is out of your reach. But the truth is being a single parent does not stop you from living in your dream home. Today you will learn some things you should know about buying a home as a single parent. These tips can help you and your family find the perfect place to call home.
What You Will Need
Below is a list of some of the things that you will need to provide your mortgage lender if you want to get a no guarantor loan. These important documents are the keys to getting the home you have always wanted.
- A Low Debt-To-Income Ratio: Finding your debt-to-income ratio will require you to do a little math. A debt-to-income ratio compares your debt payments to your overall income. Your lender will use this measure to determine how much money you can afford to borrow.
- A List of All Your Debts and Assets: This is probably the hardest part of getting prepared to apply for a mortgage. You will need to sit down and make a list of all your debts and assets. The hard part is coming up with all the documents to prove your debts and assets. Make sure to give yourself enough time to come up with these documents.
- Your Credit History: You will need a copy of your credit history so that the lender can see where you stand. While the lender will run their own check on your credit history, you should also supply one.
Work With a Trusted Estate Agent Or Realtor
Once you have gathered everything you need to apply for a mortgage, you should start looking for a realtor. Working with a trusted realtor or estate agent will help make the home buying process much easier. These real estate experts can help you find your dream home without all the hassle.
The Application Process
When it comes to the mortgage application process, be prepared to wait. Processing loan applications takes time, and it could be months before getting approved. While it doesn’t normally take that long, just understand that it will take time.
The first part of the mortgage application process will be income verification. The mortgage company will take a hard look at your income to make sure your salary is actually what you say it is.
The next part of the application process will be looking at the list of debts and assets you have provided. They will verify everything on the list, so make sure everything is correct before handing over this information.
After looking at your debts and assets, the lender will run a credit check to see your credit history. This is normally the quickest part of the loan application process.
Based on the results of the above information, your loan will either be approved or denied.
What You Can Do to Improve Your Chances of Getting Approved
If you get denied for a mortgage, don’t panic. Getting denied doesn’t mean you are doomed. It just means you need to work on your finances. Below are a few things that you can do to improve your chances of getting a mortgage.
- Pay Down Debt: If you have a lot of debt, it is always a good idea to pay down the debt before you apply for a mortgage.
- Save For a Larger Down Payment: The larger the down payment, the better your chances of getting a mortgage. When a mortgage broker sees that you are willing to put up more money, they are more willing to approve you.
- Pay Your Bills on Time: If you want to improve your odds of getting a mortgage, you should always strive to pay your bills on time. Just one late payment could keep you from getting that dream home.
- Fix Any Credit Errors: Mistakes on your credit history can keep you from getting a mortgage. These mistakes can happen when a company accidentally makes a negative comment on your report. It is a good idea to regularly check your credit history to make sure everything is correct.
Now that you know more about buying a home as a single parent, why not get the process started. Not only will buying a home save you money, but it will also give your family a true place to call home. Remember, if you work hard to get your finances in order, homeownership is possible.