Whilst you may need to work harder to get the finances you need in place, with careful planning, you can put yourself in the best possible position to get into your new home.
Here are our top tips on how to get a home loan with one income.
Clear any debt
A lender will establish your affordability based on a number of factors, including your committed monthly expenditure. If you can reduce this amount by clearing any debts you currently have, such as an outstanding credit card balance, you'll improve your chances of being approved for a home loan.
Be realistic about your borrowing
We can all get carried away when it comes to buying consumer goods, but when it comes to buying a property, it really is important to make sure you consider your limit and stick to it.
Set some time aside to sit down and go through your finances. Consider how much you can comfortably afford to pay each month without forgetting your other necessary expenses.
A lender will advise you on the maximum amount you can afford to borrow, but this doesn’t mean you actually need to borrow that much. Give yourself some flexibility, and be realistic about what you can comfortably afford on your own.
Do your homework
Taking advice will almost certainly be helpful unless you're very experienced in financial matters in general, and home loans in particular. However, it’s worth spending some time doing your research to get a basic understanding of the home loan process and the types of home loans that are available.
Save, save, save
Saving for your first home can seem like an endless and thankless task, especially if you’re buying on your own, but stick with it as it will pay dividends in the end.
The bigger deposit you have, the more attractive you'll be to lenders. The more equity you have, the lower the risk you represent. A larger deposit also means you will have a lower LTV (loan to value), which in turn will give you access to a wider variety of home loan deals.
Protect yourself
As you're buying a home with one income, it's important to make sure you have income protection in place. This ensures that should something happen to you or your job, you can continue to make your repayments.
Use a home loan broker
Regardless of whether you're single or not, speaking to a home loan broker means that you have access to expert advice for home loans as well as any related life insurance, payment protection and even buildings and contents insurance you may need.
If you've got any questions or concerns about having a home loan on your own, please get in touch with us today and we can arrange an appointment at a time to suit you.