More Women are Becoming Single Homeowners

Posted by Matin Varshochi in WomenFebruary 4, 2022(Last Updated July 27, 2022)3 min read
Key Takeaways
  • A recent study determined that 65% of single women wish to purchase their own home before marriage.
  • With the increase in single female homeowners, there is a lack of gender equality for single homeowners, as 22% of single homeowners are female, and 13% are male.
  • If you are looking at buying a home, follow the tips listed below to help with keeping the monthly payments low.
Are you ready to make some real money moves?

A recent study determined that 65% of single women would like to buy a house before marrying. Typically, the people who purchase homes are married couples. This is because they have a higher combined income, making it easier for them to pay the expenses of becoming a home buyer. However, some single people have sufficient income to become homeowners in today's society, yet they refrain from doing so due to societal norms. 

 

Why More Women Have Chosen to Buy Homes

 

Many times, society has a series of unwritten rules regarding the steps taken in a person’s life. These steps include graduating from high school or post-secondary institutions, getting a job, getting married, buying a home, and having a family. However, these expectations are not for everyone to meet. 

 

As a result, some women have chosen to break the mold and do things differently than society’s expectations. For example, many women are now deciding to become single homeowners. 

 

As there is an increase in women homeowners, there is a gender gap regarding single people owning a home. According to LendingTree, more single females own homes than single men. The value is around 22% of single women own their own homes, compared to 13% for the male counterparts. These values used by LendingTree were obtained from the United States Census Bureau.  

 

Image Credit: MIND AND I / Shutterstock.com

 

Steps to Take When Thinking of Purchasing a Home

 

As mentioned before, home purchases are not for everyone, but if you are looking at entering the real estate market, either with a significant other or as a single person, here are some tips to keep in mind.

 

Save Money for a Down Payment

 

When buying a home, the first step is to start putting money aside for a down payment. The down payment is a portion of the total purchase price for an expensive item. Typically, the average down payment is worth 6% of the purchase price for the home in the current market. 

 

For example, if you wish to purchase a $1,000,000 home, the down payment required to receive a loan for the remainder of the price is $60,000. As a down payment is a significant amount of money, it could take a while to make sufficient funds available. Thus, it is essential to begin as soon as you have determined that purchasing a home is the ideal option for you. 

 

Use Your Credit Card Frequently, but not Excessively

 

When applying for a mortgage, one of the most critical pieces of information they look at is your credit score and credit profile. These pieces of information indicate to the loan officer whether or not you are financially responsible when it comes to paying money on time. Therefore, your credit score and credit profile play a role in determining the rate for your monthly mortgage payments.

 



Having the best possible credit score is vital to ensure better loan options. To improve your score, use your credit card more frequently, and pay off the credit card expenses as soon as possible. Paying off your balances sooner indicates that you are a responsible borrower to the loan officer. This will increase your chance of getting better plans for your mortgage.

 

Lower any Outstanding Debt

 

Having debt is not a bad thing, as sometimes it is required when some significant purchases or investments need to be made. Thus, the debt amount is typically not an issue when applying for a mortgage. However, your debt repayment history is essential as loan officers use this information to determine whether you can pay your fees in full.

 

As a result, try to lower any outstanding debt you have, such as student loans, before receiving your mortgage. The more debt you have outstanding, the higher portion of your monthly income will be going towards paying these debts off, leaving you with less disposable income.

 

Making the choice of becoming a homeowner is exciting, and it is essential to know and understand the hardships that come with this decision. Therefore, before entering the real estate market by yourself or with a significant other, follow the steps to help you improve your credit score and potentially lower your monthly payments.

 

What are some other ways to improve your credit score/lower your monthly payments? Let us know in the comments below. 

 

Main Image Credit: Antonio Guillem / Shutterstock.com

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