The two-income households have the benefit and safety of two salaries to share the financial burden of buying and paying a house. However, it is still possible to buy a home if your home has a single source of income. The most important thing is to buy a house in monthly payments you can afford on one income. It is more risky than buying a double income, because if you lose your income, you need to manage to find another source of income to continue making payments.
- Save for your advancement. Most experts recommend paying 20 percent of the total cost as advance. Some banks or lenders require that you have at least 20 percent. However, you could still qualify for loans with 10 percent or even less in some cases, especially if you have good credit history. With one income, it will take longer to save for advancement with multiple entries, so start saving as soon as possible.
- Looking for a home you can afford. With 20 percent of advancement, a good rule of thumb is to look for homes that do not cost more than four times your annual salary. If you have other significant debt, you will find a home that costs three times your annual wage or less. For example, if you earn $ 50,000 a year and you have enough for 20 percent of the advance, you can probably afford a house that costs $ 200,000. If you have many debts but already have 20 percent of the advance, looking houses around US $ 150,000.
- Check your credit history and score. Your bank may check your credit score for you, or you can find a credit report online for free. Check your history, there are no mistakes. If any notes, presents a struggle with three agencies of important credit report. Your credit score history and play an important role in qualifying for a loan, especially if you’re the only candidate for the loan. Your credit score should be at least 620 to be considered for a loan. If your credit score is below 620, you could improve your paying other debts overdue balances and paying off the balances of your credit cards or other loans.
- Apply for a mortgage loan through your bank or other lending institution. Visit different stores to see what the best loan for which you qualify based on the loan amount and the rate of interest. During the process of applying for the loan, you know exactly how much your monthly payments will be if you approve. Before committing to the loan, make sure you can afford the payments with your only income. If you are married but your spouse does not work, still can apply for the loan together. If your spouse has good credit, you could help them get a better rate of interest on the loan, even though you are the only one making money to pay for it. If your spouse does not have good credit, you may be preferable to present only apply for credit.
- Make an offer on the home you want once you determine your budget based on the loan amount and monthly payments compared to your only income. If the house has been on the market for a few months, you have more buying power – make a much lower offer than the price indicated and negotiates a final price lower than this.
- Host a deadline and meeting with the seller, lender, real estate agent and company sale once your bid is accepted. Signing all documents, make your advance payment and receive the keys to your new home.