Women are not only slaying entrepreneurship this year, but ladies are also outpacing men in the real estate market. Single women in their 30s represent 14% of first-time buyers now compared with just 5% of single men in the same age group. If you’re thinking about buying your first home this year, read on to discover how.
Single Ladies: 6 Smart Steps to Buying Your First Home
#1. Clean up your credit.
Borrowers with a credit score of 760+ enjoy the best rates. Your bank may be able to pull your credit score for you free of charge. It can take a few months to see improvements, so start improving your credit rating now. Make sure you’re never spending more than 25% on your credit card and pay off any outstanding balances.
#2. Get organized.
Start organizing your paperwork now to make the process of applying for a mortgage less stressful. Put together your last 2-3 years’ tax return statements, 2 years pay stubs, your last year’s worth of bank statements and a letter from your current employer dated and signed declaring that you’re gainfully employed. The mortgage application process can take from 6 weeks to a few months, so it’s best to apply as soon as you’re financially able to.
If you’re self-employed, be prepared to present a letter from your accountant or financial advisor confirming that buying a home won’t hurt you financially or your business. You may also be asked to present an additional year of tax returns to prove that you’ve been making a consistent income over the past few years.
#3. Save more.
The more deposit you can pay upfront on your new home, the better. Aim to save 25% deposit (minimum of 15%) to give you better interest rates and negotiating oportunities.
#4. Work out what you can afford.
The quickest way to work out what you can comfortably afford is to multiply your annual salary by 2, or 2.5.
