Traditionally for real estate in Repentigny and other cities, home buyers families with kids. But just because you’re a bachelor doesn’t mean you can’t buy a house for yourself. About a third of all new home purchasers are actually single buyers, and a lot of them are men.
It won’t be easy to buy a dream house when you’re flying solo, and that’s what you have to accept. You’re mostly relying only on your own savings, plus you only have yourself as the sole source of income. But you can buy your own house instead of just renting a bachelor pa, if you keep the following tips in mind.
Clean up your credit score first. Having good credit results in better chances of success, and bad credit will simply not get it done. So you shouldn’t miss credit card and car loan payments, especially two in row.
You need to maintain good credit, and you have to make sure that all details in your credit reports are correct and accurate. A quarter of mortgage application rejections are due to inaccuracies and errors in the credit report.
Downplay your projected financial capabilities. It’s a good idea to consult a pro—such as a mortgage broker or a bank—to get pre approved for a mortgage. So let’s assume that after looking at your savings, income, and other financial details they say you’re preapproved to get a mortgage for a $400,000 house. You take that figure and reduce it to about 80% or $320,000. That’s the price of the home you can actually afford to get. You need a safety net, since it’s very possible that you may have a different employment situation further down the road.
Be able to put down a 20% down payment. This gives you equity right away, and it also allows you to get lower interest rates on your mortgage loan. It’s also a very good test: if you’re not able to pay 20% of the price right away, then you can’t afford that house.
Know how much you have to pay in closing costs. These are the fees for the appraisal inspection, loan application, loan broker, buyer’s broker, structural inspection and a few more. The down payment and the closing costs are just the first wave of payments you need to make.
The next wave will also include ongoing costs, and you have to factor them in too. You need to know if you can cover the home and hazard (such as flood) insurance, property taxes, and homeowner’s association fees. There are also the moving expenses to consider, plus you may need to do renovations and buy furnishings.
Go for a fixed rate mortgage, either for 30 or 15 years. The most crucial point here is that it has to be a fixed rate so you’re aware of how much you have to pay for the mortgage each month. It will be the same no matter what, and your payments won’t be affected by market interest rates and how the economy is doing. This is the kind of stability you need, because you must be able to budget your finances responsibly.
Buying a home requires you to play it smart, and if you’re a bachelor you have to play it safe. Everything, from the monthly payments for the home and for the insurance, plus regular maintenance and utilities, is your financial burden, and you’re alone. Don’t harbor unrealistic hopes about mansions when you can’t afford one. By being realistic and prepared, you should be able to get the house you can really afford once you’ve saved enough money and earn enough regular income.