If you are a single woman thinking about buying a home of your own you are part of a growing trend. According to the National Association of Realtors, single women accounted for 60% more home purchases than single men… only surpassed by married couples.
But just because more women than ever are buying homes of their own doesn't mean you are ready to buy. Here are some things to consider if you are thinking about buying.
Are you financially ready?
- Compare the cost of renting to buying – with rents on the rise and continued low interest rates, many people are finding a mortgage payment is significantly less than what they are paying in rent
- Save for a down payment – financing is available with as little as 3-3.5% down and you may be eligible for first time home buyer down payment assistance programs… but better yet, if you can save for 20% down you will not have to pay mortgage insurance and will have the assurance that you can sell in the future if life or market circumstances change
- Plan for more than your monthly mortgage payment – don't forget that you will also have home maintenance expenses and utility costs
- Take care of yourself – make sure you can still contribute to a retirement fund, have disability insurance and ideally have six months of living expenses saved up for emergencies
Think about the future
- Plan to stay 5-7 years – there are many costs involved in buying a home, including financing and moving costs; plan to stay long enough to make it worthwhile
- Consider what would change if you met a long-term partner and/or added children to your life – could the home accommodate two or more? is it marketable if you decide to sell or rentable if you decide to keep it but live elsewhere?
Ready to become a homeowner? First steps are getting pre-approved for financing and meeting with a Realtor to find out if you could find a home in a location that is comfortable for you at a price you can afford. Let us know if we can help!
Sharlene Hensrud, RE/MAX Results - Minneapolis-St. Paul Buyer's Agent