The 21st century finds more people embracing singlehood. But what does that mean for the housing sector when banks are more inclined to provide couples and dual income households with finance? The truth is, there are many who endeavoured to buy a house a single person or on a sole income and it ended in success. So, how can you do it?
Here’s How to Buy a House When You’re Single or on a Sole Income
Get a Mortgage broker
When you need a website designed, you approach a designer or when you need your car fixed you find a mechanic. This is exactly what a mortgage broker is, a specialist. Only instead of creating websites or fixing cars, a mortgage broker acts as a middleman between you and lenders to help you find financial support for a house. They are savvy and educated on which institutions are more likely to grant you a home loan when you’re on a single income.
Review Your Credit Report
Before applying for a loan, ensure review your debt and ensure your credit profile is up to date or in tip-top shape. Banks look to this as a reference on whether or not you are trustworthy enough to receive a home loan.
Some tips:
- If you have a credit card be sure to reduce your limit as much as possible as banks view this as an overall debt. The higher the limit, the higher the debt.
- If you can avoid making large credit card purchases before a home loan application as it affects your overall credit profile.
Apply For a Housing Subsidy
The government makes buying a house a possibility by granting housing subsidies to people on low income or who are single. And with housing costing as much as it does, applying for a government subsidy is an avenue you need to explore if you require additional funding. Better yet, if your monthly income is less than R3500, you are not required to repay the loan.
Work Out Your Own Budget
It’s important to always remain aware of your budget. The worst thing you can do for your financial well-being is biting off more than you can chew. When it comes to receiving finance for a home you are not required to take the whole amount offered. Instead, accept only what you need and can afford.
