What are the quickest way to buy a house as a single parent?
November 16th, 2009
What are the best companies to try to get a loan with? Is there anyone able to evaluate you on something other than credit? Where are some of the best places to live as a single parent? What do banks look for as a single person buying a home? how much money should you try to save? How long should you atleast be on your job? Any xtra tips? Hints? short cuts? Things you did?
Entry Filed under: parenting advice for single mums and dads
1 Comment Add your own
1. Kevin B | November 16th, 2009 at 3:28 am
Your best bet is to talk to a local mortgage broker. I’ve broken down the 4 things that mortgage companies look at when making a decision on your application as:
income
assets
credit
property
I tell my clients that its like a chair with 4 legs. You need all to be a decent length for it to work. If one is short but three are long, you’re still good.
I plan on going into detail on these at my blog pretty soon.
For income, you want 2 years job history in a similar line of work. Ideally the banks like to see one job. If you increased in income on your job changes, that’s a good thing to the bank.
Whether you’re a single parent, a married spouse, or a polygamist, banks are all looking at one thing: your debt-to-income ratio. If you can afford the house comfortably along with all your other bills, you should be ok.
You’ll want to put assets away in a bank account if you can. This is not always an option for some people, just do the best you can. Having a 401k or IRA will also help to get you an approval.
Your loan officer will pull your credit and determine exactly what you need to do to get qualified for a mortgage if you’re not already. Paying credit balances down to half of their credit limit will increase your score as well as paying off very recent charge-offs and collections.
Lenders love Single Family Homes. If your credit isn’t great try not to fall in love with a trailer or modular. Having a desirable property helps your approval.
If you can balance these four things you should be fine. Read my blog to learn more about what mortgage brokers do and how to set yourself up for an approval: http://explaintome.blogspot.com
Soon I’ll be covering this topic. Drop me an email or comment in the blog and I’ll let you know when it gets updated.
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