5 Mortgage Tips for Single Parent Homebuyers

by The Rama Mehra Team

Buying a home is already challenging in itself and if you're a single parent, there might be some hurdles that you will face while looking for the perfect home for you and your kids.

And even though it's difficult, it doesn't mean that it is impossible. Read on to know these 5 practical tips (and a BONUS!) to achieve your dream home.

1. Include alimony and child benefit payments

This is the single parent's leverage against lenders: his or her benefits.

You have to remember that you have to prove that you are able to pay. Make sure that all your benefits are taken into account.

2. Pay a significant down payment

Since it's going to be hard to get a good mortgage rate, paying a huge amount as a down payment will both help you get a great lender and a better rate. Consider this as you start saving for your downpayment. Better begin with a huge start so it's going to be easier to pay the monthly dues.

Aside from that, prioritize having a great credit score since it's a great indicator for the lender that you are a good payer.

3. Consider specialty loans or down payment assistance

There are loans given specifically for single parents that feature low-interest rates. That are also special offers for teachers, firefighters, ETC. There are a lot of opportunities out there to lend you a helping hand. Make sure that you ask your local agent if there are loans that you can avail within the local area.

4. Work with a local lender

Great deals might not be that great if they're remotely processed. Sorting out market-specific details can be difficult as compared to working with a lender within the area.

If you're new to the neighborhood, ask your realtor for their recommended local lender. Also do your own research and weigh your options before making a commitment with a specific lender.

5. Avoid adjustable rates

Get a fixed mortgage rate to avoid any price hike within the coming years. Thoroughly go through your contract with the lender to avoid any penalties. To make sure that you understand all the details of the contract, work with a trusted and competent realtor.