Relishing the dream of owning a home as a single parent is tough. You juggle with work, bill payments, children’s expenses, etc. The financial pressure is intense. You can hardly think of owning a home if this independent status is new to you. However, sometimes, you may think of having your own home and ditch shifting rentals. Homeownership gives you the authority and freedom to live as per your lifestyle. It also grants a sense of achievement.

6 strategies to buy a home as a single parent

Buying a home or a residential property is a big life decision. It requires saving enough for the deposit, knowing your liabilities, and balancing other payments. Moreover, a mortgage is a long-term commitment. Thus, check whether you can continue payments for around 15-20 years without skipping. Individuals with consistent income and low liabilities can manage it well. Here are other strategies to buy a home as a single parent:

1)     Choose the affordable property type

Homeownership operates in multiple ways. You can buy a condo, an apartment, a villa, a duplex, etc. Analyse your needs, family members, and budget. Choose a property that aligns well with the location preference and budget. Identify the facilities you can receive by having a home in that area.

Analyse your affordability by checking your investments, salary, and deposits you can provide. It will help you have a quick idea. You can also use a loan calculator to know your stakes.

Prequalify for mortgages for single parents in the UK marketplace. You can do it with the providers for which you are eligible. It helps you understand the approximate amount you need to buy a home.  Accordingly, you can save money and prepare finances. The best part is – the check does not hurt your credit score. It only helps with the essential evaluation of how much you can afford on a mortgage.

2)     Improve your income

You must begin planning the home purchase at least 3 years before. It involves saving enough, reducing debts, and increasing income. Unless you can save a specific amount per month, you may not qualify for the mortgage. Thus, analyse your current income and liabilities.

Switching jobs if you cannot afford mortgage payments within your current income. Check whether learning a skill or certifications may help improve salary prospects. Identify the best part-time incomes to do alongside fixed jobs. If yes, do it now and grab a handsome package. Check out a higher cash to save towards home ownership.

Additionally, save some for the debt clearance. Identify the pending payments and the total amount you owe. Begin with the smallest debt to clear first. Yes, you cannot get a mortgage with a poor credit history or too many debts. Optimising your credit profile by settling some debts boosts your credit rating. It brings down your liabilities and helps you get instant mortgage approval.

3)     Optimise your credit score

It is one of the most essential parts of buying a home as a single parent. Check your current credit score and analyse the required one. However, there are no specific credit score requirements, and you must have a good one. It means having a credit score between 700-900 may help you get an instant quote. No, you may not qualify for a mortgage with a bad credit score. Alternatively, the loan provider may demand additional proof, like a guarantor, to qualify.

Thus, you can improve your credit score by taking a few initiatives. For example:

• Pay the pending credit card bills
• Update the personal information on the credit report (contact number or address)
• Take up a credit builder loan and repay regularly
• Disassociate from any bad credit joint account
• Have a personal and business account separately

Moreover, paying off the costliest debts first is the quickest way to improve your credit score. If you have over 5, consolidate the dues. It helps you manage the payments better and drastically reduce the amount you owe.

4)     Avoid engaging in any big-ticket purchase

You may want to achieve all your dreams quickly. Thus, you may be seeking a car loan or home renovation loan alongside a mortgage. This is the biggest mistake to commit. Don’t apply for any such loans if you plan to buy a home. Alternatively, you can get a car loan first before committing to a mortgage. This is because a mortgage is a long-term agreement for 25 years.

Thus, you must pay regularly until that term. It would be ideal to prioritise your goals before buying a home. Besides that, don’t engage in heavy expenses after getting the mortgage. It may affect the repayments and the dream of home ownership.

5)     Grab a loan quote and choose repayments

Check and get a mortgage quote once you repair your finances and income. Before choosing the mortgage provider, analyse the APR, deposit requirements, interest rates, etc. Check for hidden loan costs while exploring the best loan companies in the UK marketplace. Certain surprising costs may increase the total amount you owe on the mortgage. Thus, it may hamper the budget.

Understand how you can improve the research part. You can take suggestions from friends and family when choosing a reliable mortgage partner. It is a long-term agreement, and hence, you must be conscious while choosing one.

Next, identify the loan repayment term for which you want to get the mortgage. You can sum up the deal in 15 years or 20. It depends on your loan affordability, liabilities, and other payments.  Choosing a longer term implies more interest costs. However, always prioritise affordability over everything else while applying for a mortgage.

6)     Repay the loan and own the keys

Lastly, you just need to repay the loan payments for the term. It may prove challenging initially. However, you can repay comfortably after adjusting your finances a little. If you encounter any financial challenge or income drop, reach out to the provider. Do it before skipping the loan payment. It will help you understand the other options.

The provider may halt the interest payments and request you cover the principal payment first. Alternatively, you may get a new agreement stating revised terms and the payable amount. The provider designs one after considering new finances or liabilities. Eventually, you can own the keys to your dream home after completing the loan term and payments.

Bottom line

These are the best strategies for buying a home as a single parent. It is a huge responsibility to buy a home all alone. However, empowering finances and reducing the debt may help. You may get an affordable mortgage quote and pay less interest overall.

Check the grants or other government facilities that may help with home ownership as a single parent. It may indeed prove beneficial for you. Don’t agree if you share slight doubts about defaulting on the payments. It may hamper the loan approval and management.