18% of all new homeowners in the US are women, according to Quicken Loans. Bachelorettes are buying homes twice as often as their potential male dating pool, despite lower salaries. Women are scooping up houses for a number of reasons, including financial stability and ever-expanding rental fees, which make buying – even in a seller’s market – an income-friendly option. But, homeownership isn’t a commitment to be taken lightly.
Here are a tips for all the single ladies out there when buying a home is all you really want…
Focus on finances. When the working day is done, how much money do you have left to put toward your home purchase? Many home loans require between 5% and 20% of the home price down and a credit score of at least 620; the average woman has a FICO score of 675, according to Experian. Closing costs, utility fees, and other related expenses add up fast. You should have at least your down payment and closing costs set aside in cash, along with enough money to buy new home furnishings. Based on an average woman-owned home value of $229,000, you may need up to $50,000 in cash at closing. Be aware of your estimated monthly mortgage payment, as well, including any taxes and PMI that could up the payment by hundreds of dollars. Ideally, your mortgage is no more than 36% of your gross monthly income; some experts recommend no more than 25% of your take-home pay. To figure out if you can afford the home you’re interested in, use an online home cost calculator to determine your monthly expenses.
Location, location, location. Coming home in the morning light may not be such a good idea if you’ve unwittingly chosen a bad neighborhood. And if you have children, you also need to know the reputation of the school district and the specific schools they will attend. GreatSchools.org offers information on performance in science and math as well as teacher/student ratio and services available for special needs and low income students. Check local crime stats at the beginning of your search so you don’t wind up parking yourself in a perpetual Purge sequel. Location plays a part in property insurance rates, too. Flooding is such a huge and costly issue that congress has mandated that insurers require flood insurance for homes in high-risk areas. The FEMA Flood Zone Map can show you if the white picket fence you have picked out stands a chance at weathering the weather.
Consider condition. There are many home improvements that beg for a Pinterest Queen’s touch. But not all of them are for the DIY-divas out there. Mold, water damage, structural issues, and inconvenient floor plans should be automatic deal breakers if you want your investment to appreciate instead of deteriorate. Other property features to consider include the condition of the HVAC system, which can cost more than $10,000 to replace, the hot water heater, age of remaining appliances, and age of the electrical system. Regardless of what home you choose, insist on a home warranty to help cover the costs of unexpected appliance breakdowns.
Muscle for the move. Even if you have tons of helping hands ready and waiting to get you on your way, professional movers are a smart choice. Reputable relocation services are considerably more reliable than Facebook friends who promise to help you pack. Furthermore, these companies offer the peace-of-mind that your personal belongings will arrive in one piece (and will be replaced in case of mishandling). Movers may additionally act as a buffer between you and your ex if your move if due to a divorce or domestic abuse. Depending on your agreement with the moving company and cooperativeness of your former fling, you may not have to be present while things are being loaded.
So remember, watch your money, hire good help, and avoid homes with excess baggage that would weigh you down, or worse, diminish the value of your investment.