Houses before spouses: buying a home as a single person
“Houses before spouses” is a trending term that encourages single people to buy a home now, rather than waiting for marriage. Today, homeownership can be a pathway to financial stability and personal empowerment for responsible adults, regardless of their marital status. When one person buys a house independently, it gives them the freedom to create a space that’s uniquely theirs and lets them enjoy a sense of belonging within their chosen community.
If you’re thinking about solo homeownership instead of continuing to rent, here’s some expert insight to help you prepare as a single applicant. Read on to learn about mortgage requirements, understand the related expenses and put a plan in place for your future. You can do it and Guild Mortgage can help!
Starting the process as a single applicant
Before diving into your home search, it’s a great idea to talk to your local Guild loan officer. They specialize in helping borrowers understand their loan options and can guide you through the mortgage application process, from the initial consultation until closing day and beyond.
Step one is to find out how much you can afford to borrow and the types of loans that may be available to you as a single applicant. This will be based on your:
- Income and employment: To qualify for most loans as a first-time homebuyer, borrowers usually need to show a stable job history, ideally with the same employer for at least two years. Your Guild loan officer may ask you to provide proof of steady income, with documents like pay stubs, W-2 forms or tax returns. If you’re self-employed and wondering how to get a house on your own, Guild can help verify your income with our bank statement program.
The items listed above will not inhibit you from starting the loan process. - Debt to income (DTI) ratio: This metric compares your monthly debt payments to your gross monthly income. Generally, the lower the percentage, the better your chances are of getting pre-qualified. DTI limits vary, depending on the loan program.
- Credit score: A good credit score and a clean credit history mean you’re more likely to pay your mortgage on time, thus meeting more of the requirements for a variety of loan programs. You can find out your score with a free annual report from each credit bureau.
How you can get a house with a co-signer’s help
Many first-time homebuyers are just starting out and may not qualify for a mortgage as a single applicant. If you find yourself in this situation, you may want to consider asking a close family member or friend with a strong financial profile to help you as a co-signer. A co-signer’s purchasing power may strengthen your mortgage application, allowing you to get a better interest rate and terms, potentially lowering your monthly payments. Make sure all parties understand the shared responsibilities and risks before moving forward.
Budgeting for expenses with a focus on the future
When one person buys a house, beyond the downpayment and closing costs, there are other expenses to budget for.
Emergency funds: It’s always wise to prepare for the unexpected by putting away six months of income as a financial safety net, to cover your bills in case of job loss or illness.
Moving expenses: Although mobile storage units and truck rentals offer DIY savings, many people prefer to use professional movers. According to recent data from Angie’s List, a local move by a moving company averages $1,720 and moving long distance can cost anywhere from $2,700 to $10,000 or more. (These numbers can vary, depending on mileage and how many belongings you’re transporting.)
New home set-up: From connecting utilities to purchasing furniture to replacing appliances, these expenses could include anything you need to settle in and make yourself comfortable.
While the initial costs seem steep, experts agree the investment in a new home can be more lucrative if you plan to stay in the home for at least five years. This gives you time to:
- Financially recover from the new home-related expenses
- Build more equity through monthly mortgage payments
- Potentially profit from real estate appreciation
- Take advantage of any tax benefits
Considering this insight, it’s important to think about potential future lifestyle changes or career advancements and be sure they align with your plan to purchase a home and settle in for the long-term.
Speak to an attorney for peace of mind
As you plan for your future as a homeowner, another thing to consider is what will happen to your property–likely your most significant asset–after you’re gone. While it’s not pleasant to think about, having a clear plan in place offers peace of mind and protects your loved ones from potential surprises. By working with a qualified estate planning attorney to create the necessary documents, you can make sure that everything is handled according to your wishes.
If you’re ready to experience the independence and confidence that come with solo homeownership, turn to the experts at Guild. Your loan officer will guide you through a simple process, offering personalized support to help you achieve your dream.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.