There are different reasons as to why we would want to buy a house even if our income comes from a single source. It’s safe to say that it is every person’s dream to at least have a house on their own. Of course, there are a lot of things to consider before getting a house on your own. But rest assured that it’s been done by a lot of people before, so yes, it can be done. In this article, we give you 4 important points that may be able to help you get through the underwriting process.
Protect Your Income
If ever you are unable to work due to an illness or an accident, your income is protected if your employer offers disability insurance. Or if this is not the case, it is best to look for a coverage that will be able to help you pay your bills if such events happen.
Checking Your Credit
This is important as lenders will have to look at your credit since you’re applying for a mortgage on your own. Review your credit report beforehand and avoid making big credit card purchases before and after you apply for a home loan as this would make you look like a big risk even if you are not. It’s also best to make sure that there aren’t any mistakes in your credit report. As it’s important to have your credit presented in great shape.
Have a Co-Borrower in the Loan
A co-borrower might be able to help you clear your underwriting problems. This might be a good idea as the lender will also have to look at your co-borrower’s income, assets and credit history when assessing the application and not just yours. But your co-borrower must be aware that if you have trouble paying in the future, the bank might go after your co-borrower also. If you are worried, you can always wait until you are qualified for a loan by yourself.
An alternative to the conventional mortgage which would normally require a 20% down payment, is a government insured loan. Government-insured loans have smaller requirements. Such as the “Federal Housing Administration” (FHA). It only requires a 3.5% down payment. Be careful though, as paying 3.5% won’t give you much equity if something comes up in the stock market.
Even if mortgages usually require a good credit report and income protection, there are a lot of low down payment programs nowadays that you don’t have to be wealthy to get a mortgage on your own. At Wellcovered Insurance Group, we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (386) 218-4951 or Click Here to request a free quote.