buying a new home tips

Buying a New Home On a Single Income

February 1, 2018

How to Buy a New House at Tres Lagos

Buying a new home on a single income can be possible at Tres Lagos. These days many young adults are postponing marriage, and the number of people buying a house on a single income is substantial. Many millennial home buyers last year were single. Many mortgage companies that receive a single mortgage applicant rely on one salary and one credit profile in order to secure a loan, so getting through the underwriting process can be a little bit trickier. Be sure to check your credit before applying on your own. Lenders will only be looking at one credit and it must look good to get the lender to say yes to a loan. Here are a few tips that could help you through the process of purchasing a new home in McAllen.

Protecting Your Income

You need to protect your income. The first mortgage payment can be startling for young homeowners unaccustomed to paying a big monthly bill. As single home buyers rely on one source of income to pay the lender, it’s a good idea to take out some protection. If your employer doesn’t offer disability insurance or a simple health insurance plan, you should consider looking in to a more robust coverage on your own. If you should experience an unforeseen illness or accident, this coverage can help you pay your bills. A mortgage protection life insurance can also help take care of your mortgage payments if you are unable to work. This type of insurance is only intended to help with home loans. This is a great option for those with riskier jobs or poor health.

Utilizing a Co‑Signer

Sometimes having a co‑borrower on the loan of your new home in McAllen can help buyers clear the underwriting hurdle, especially if you don’t have a long credit history. When having a co‑borrower, the lender will look at the co‑borrower’s income, assets and credit history when assessing the application. While they may be doing you a huge favor by joining you on the loan, you have to always be sure to explain the consequences. In the event that you might start having trouble to make payments on your loan, the lender can go after the co‑borrower too.

Searching for New Homes

While looking for new homes for sales in McAllen, you can also start looking in to government programs. A conventional mortgage typically requires a 20% down payment, something that can be hard to do if you are drawing on only one person’s savings. If you can afford it and are thinking of applying for a conventional mortgage as a single person, take some time to compare interest rates, and mortgage types to decrease the amount of interest you will ultimately pay. If you are struggling to come up with a down payment, you can consider a government‑insured loan. These type of government loans have a much smaller requirement.

Buying a New Family Home in McAllen, TX

The fact is, to buy a new family home in McAllen you need to be well‑heeled to get a mortgage on your own. However, it does require having a sparkling credit report and making sure that you have sufficient income protection. If you are thinking about buying a new home on a single income visit us at Tres Lagos or contact us here to get started.


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