While home loans are accessible to many people, those who are single often find it hard to secure one. However, it is not impossible that you can land a home loan for the property you desire.
Here are three tips to help you secure a home loan even if you are single:
1. Be realistic about the venture
Because you are single, you most likely have only one source of income. For that reason, when it comes to looking to borrow money, it helps to realize that you will not be able to borrow as much.
As such, it pays to be a little realistic. However, it does not mean you should compromise something. For example, you do not have to opt for a smaller home that you might not like just because you do not have enough money for it. Instead, you can borrow that money and purchase an excellent studio apartment in the city if you find that space is enough for your needs.
2. Start saving right away
Do not just hold your breath and hope for the best when you go out to look for a home loan. While you cannot entirely convince a loaner to give you money, you can still motivate them to do so by saving money.
Remember, when you apply for a loan, they will look at how financially responsible you are. This will mean that they will look at your record of savings and bank transactions, and generally figuring out if you are responsible. If they find that you are, you have a better chance to get the cash that you need. Otherwise, if you have not been saving much lately, start right away. Start closing all the credit cards you do not use, paying off the debts you have, and saving that stack of money.
3. Use first-home buyer benefits
For some reasons, many first-home buyers tend to forget that there are benefits to be had, such as state grants. That means that if you are going to buy your first home, you can use the grant to lower the cost of the house, allowing you to borrow less money.
That said, do note that these benefits will vary from state to state, so you will need to do a bit of research to figure out what the benefits are and what requirements you have to fulfil to enjoy them.
By following the above three tips, you will be able to increase your chances of securing a home loan even when you are single. You may also be able to secure one that’s large enough to help you land a home that you’re happy with. Once you have a home for yourself, you may also want to turn it into a rental property. If you have spare rooms or want to purchase another property elsewhere, rent it out! It is going to be a great source of income, which can also help you pay off your loan eventually.
We can help you secure a home loan in Perth, WA. Get in touch with us today at Finance Corp to learn more about how our finance managers can assist you!