It is no secret that affordability is an issue today, not just in the United States, but worldwide. Despite this situation, you can still find smart ways to get the best deals, even in the housing market. This is especially helpful if you are thinking of buying a house on a single income. For the solo buyers out there, here is how to afford a home on a single income. If you are interested in building a custom home in Maryland, visit Ameri-Star Homes!
Things to Keep in Mind
Buying a house on a single income could apply to more than one type of person. It could be a single person, but it could also be a married couple with only one spouse with an income. It could also be a small family with a single parent. Many assume that affording a home on a single income applies only to singles, but many others could benefit from the tips below as well.
Affording a Home on a Single Income
Saving is ultimately how you afford a home on a single income. Living frugally would mean buying groceries more than eating out and cutting out as many frivolous expenses as possible. Even if you do have a healthy splurge now and then, your saving habit should be consistent. The target amount to save up would be a 5% downpayment, but you can get a loan with as little as a 3% downpayment and will ultimately depend on how much you can afford for the monthly mortgage loan, maintenance, utilities, etc. Some individuals may qualify for Veterans Administration $0 downpayment financing. Ameri-Star Homes works with several approved lenders that can help you decide which loan program is best for you.
Have Good Credit
Lenders will let you borrow more money if you have an excellent credit score. They want to know how trustworthy you are to pay back based on your financial history. In this way, using a credit card regularly can be helpful. A score of 740 or more will help you land a home with the lowest interest rate possible. Download one of the many free credit report apps that include helpful tips on how to increase your credit score.
Get a Mortgage Preapproval
A mortgage preapproval is an evaluation and report of what you can afford based on your current income. It can be very handy, since you won’t have to waste time looking at houses or properties you realize later are out of your price range. Ameri-Star Homes knows a few select approved lenders that can help you even if you don’t have a home built by Ameri-Star Homes; they are here to help.
Let Ameri-Star Homes Build Your New Custom Home!
Ameri-Star Homes was built on the idea that a home is not complete until the homeowner is 100% satisfied. That’s right, completely satisfied homeowners. Whether you want a home built on one of our home sites or on your own land, count on the same high quality from Ameri-Star Homes. We have set out to exceed all your expectations of integrity, affordability, and customer satisfaction. Build lasting memories for years to come with Ameri-Star Homes.