This story could be about any single girl living on her own. At a certain point in her life, she gets tired of renting and decides that she wants to get her own version of the American dream. She watches anxiously as her rent surpasses pre-pandemic thresholds and decides that her dollars deserve better. Inspired, she grabs her laptop and begins surfing real estate websites, when she suddenly stops. Looking down at her naked ring finger, she is reminded again that she isn’t married. How could she buy a home without a Prince? There was no guidebook for her to follow…so she bought the house.
The Remix
These days, single women can’t bet on their Prince actually showing up. Sometimes the chips don’t fall “perfectly”, and women find themselves in a precarious position. Do they buy a home on their own or wait for their white picket fence scenario? I’ve been there.
I am here to tell you that you don’t have to postpone your dream of becoming a homeowner just because you are single. Sure the market is tough right now, and the economy is a bit of a struggle, but you can absolutely do it. Even on one income. You can be the exception to the white picket fence rule. If your dream is to become a homeowner in the near future, now is the perfect time to start making it a reality.
I decided to buy a home on my own when I was thirty-one years old. My prince was nowhere to be found, and I was tired of renting. Unfortunately, I wasn’t in the best financial shape, as I was still spending most of my money on material things. Yes, I was definitely late to the fiscally responsible party, but I wasn’t going to let that discourage me.
I decided to clean up my financial life and take my goals seriously. I’m definitely not a finance expert, but I’m going to share with you the things that I did to make my dream of homeownership a reality. If I can do it, so can you!
Make The Big Decisions
One of the best things about buying a home on your own is that you get to make all of the decisions.
Location Location Location
Where do you want to live? It’s really important to figure out where you’ll be happy, and where you can see yourself in the next 5-10 years. For me, that was New York City. I loved living in the city but was tired of the astronomical rents, and the high cost of living. I had friends who paid less on their mortgage payments than I paid in rent. Crazy, I know.
I told myself that if I couldn’t find a place to buy, I was going to leave. I was truly at a crossroads. I began financially preparing myself for either result and fortunately, an opportunity to buy presented itself.
With all of the ups and downs of living in NYC, I felt super comfortable settling here, because I knew that I could be happy. Knowing where you want to be is half the battle.
Housing Type
Another important thing to consider is what type of home you would like to live in. Would you be happier in a single-family home with your own yard or an apartment building?
When you live in the city, your choices are sometimes limited to brownstones or apartment buildings. As a single woman, I knew that I wasn’t interested in the responsibility that comes with major repairs on a house. I also knew that there was a possibility that I could get married or have children one day. With that in mind, I opted for an apartment with multiple bedrooms, just in case.
By taking these things into consideration now, when the opportunity presents itself, you’ll know exactly what you want.
Credit Check
Your credit score. A top-secret number that is sure to quiet a room. Having an excellent credit score is like someone handing you a magic key during the home-buying process. This key entitles you to everything behind Door #1 (better lenders, good interest rates, better terms). You get the picture.
With the real estate market in flux right now, there is no better time to tighten up your credit for a future purchase when the interest rates come down.
In the meantime, here are some things that you can do to improve your credit:
- Get a copy of your credit report and score, and identify potential areas for improvement
- Pay down your debt like yesterday
- Pay all of your bills on time for the foreseeable future
- Work with creditors to settle accounts and remove derogatory information from your report
- Don’t apply for new accounts or additional lines of credit
- Don’t allow anyone to do a credit inquiry on your behalf unless absolutely necessary
Improving your credit score doesn’t happen overnight, but doing these things will set you up for success in the future.
Also, if you don’t have a credit history, you can build it by applying for a secured credit card. With a secured credit card, you actually put your own funds on the card. When you use the card, and make timely payments, you build credit.
Save Save Save
Things are really getting competitive from a homebuying perspective. Many banks are now asking for larger down payments than in the past. The best thing you can do to support your dream of homeownership is to start saving right now.
By saving in advance, you’ll be good to go when the bank asks you for that big down payment. You’ll pay those closing costs without even batting an eyelash. Full disclosure…after I paid my closing costs, I had about $28 in my bank account. You live and you learn.
The End Game
So if you…
- Make The Big Decisions
- Tighten Up Your Credit
- Save Money
You are well on your way to buying a home on your own. And guess what? If your Prince does come along, you can tuck your real estate safely away in a prenup and buy something together…
If you have a moment, check out my previous post “Waiting For Permission…An Unconventional Life” https://herpicketfence.com/waiting-for-permission-an-unconventional-life/
