Single and Looking (for My Very Own Deed)

Single and looking? Take heart! So many people would love to be in your position. Some never have a home that’s theirs alone.

If you think most people in the current real estate market are couples, you’re right. Yet single buyers make up more than a fourth of all buyers. You could join them, and start building wealth through home equity. Here’s how single buyers pull it off — boiled down to seven key steps.

Step 1. Confirm Your Commitment.

If you’re going solo, with just your name on the title and the loan, your homeownership and your home equity will be totally under your own control. That’s a sweet spot to be in.

And if you’re feeling jittery before you even begin, remember this. So many people would love to be in your position. Some never have a home that’s theirs alone.

Seeking a home brings stresses, surprises, and compromises. These can be harder, not easier, with two or more people involved. And some nice homes are out there that would best suit a single buyer — the one-bedroom condo unit, for example.

Have you gathered your resolve? Are you ready to jump into the real estate market? Then let’s get into the nitty gritty of readying your finances and finding the right professionals.

Step 2. Anticipate Key Costs; Gather a Down Payment.

Save, save, save. You’ll need to pay for a heap of closing costs. You’ll need homeowner’s insurance, and probably title insurance, too. It’s good to insure your property against unexpected title defects that the title company might overlook.

How much are the homeowner association fees (if any)? Don’t forget local taxes, fees for a home appraisal and inspection, the expense of furnishing a home, and the cost of the physical move.

Later on, you’ll need cash reserves for home maintenance. Probably more than you think.

Then again, once you’re settled in, budgeting for housing costs may well beat what you pay in rent. But if you struggle to gather the funds to cover the big costs that come with closing, you might give some thought to going in with a co-owner.

While putting 20% down isn’t mandatory, it’s certainly a good start. Having 20% equity from the get-go helps a buyer ride out market fluctuations.

Step 3. Shop for a Mortgage.

Early on — even before you’re sure you’re ready to buy — you’ll want to talk with some mortgage specialists about financing. Ask homeowners you know for recommendations. Tell the consultants you’re hoping to apply and get pre-qualified. A mortgage consultant can check various lenders’ current available mortgage rates for you.

Need down payment assistance? Help with down payments and closing costs is available out there. Clued-in consultants can connect you with possibilities. Choose the mortgage expert who says approval is possible for you. Choose the one who’s energized about supporting your journey.

A mortgage expert can also tell you what to do (and not to do) that could impact your credit. Avoid buying big stuff or doing anything to impact your credit score until after closing day!

Step 4. Find Your Agent.

Buying a home is a major milestone, and you can do it on your own. Hiring a real estate agent is part of doing it well. A good agent can iron out the wrinkles in the process, and give you pep talks when you need them. While your mortgage specialist will tell you what you qualify for, your agent will help you choose a home you can comfortably afford.

Friends who have bought homes in recent years can connect you with helpful local professionals. Finding a motivated, empathetic agent makes a world of difference for a solo seeker.

Step 5. If You’re Co-Buying, Decide How You Want Your Ownership Divided.

If you’re the sole owner, you won’t have to concern yourself with vesting decisions. But if there are two or more of you buying, will you go in as tenants in common? If that’s what you want your deed to say, then you may agree to buy 50-50, or create any other division of the whole property. One reason you might divide your ownership unequally? To allot more value to the main co-borrower.

Alternatively, you might want to ensure your deed stays within the original buyers’ hands in the event that one of you dies during your shared ownership. If so, you’ll own the place equally, probably as joint tenants with rights of survivorship. The surviving owner, in joint ownership, gets the entire home.

Learn about changing the deed in the case of one co-owner’s death.

Step 6. Go Shopping for a Home.

Once you have your pre-approval in hand, you know how much house you can buy, and you can show sellers you’re a serious shopper.

Know what you value. Perhaps it’s convenient local transit, shops and walkability. Maybe it’s a highly rated school system. (Even if you don’t have kids, a high-ranking school system is a surefire value builder!) Maybe your must-have is a sunny deck, or a placid garden, or a beautifully tiled kitchen.

Breaking even on a home purchase takes longer these days, with prices where they are. So, try to get a home you can enjoy for years.   

Step 7. Sign the Purchase Agreement and Prepare for the Inspection.

The agreement you sign with a seller should be contingent on the sound condition of the home. Ahead of closing day, you’ll want to have the inspection completed.

Follow the inspector around and learn as much as you can about the home. (Most professionals love to teach.)

After you get the inspector’s report, talk it over with your agent. You might need to make a plan to negotiate with the seller for needed repairs — or a break on the price so you can cover the work that must be done.

Step 8. Steel Yourself for the Home Stretch.

After you make your offer to a seller, prepare for emails and messages coming in fits and starts from the mortgage expert. Some of the questions will be exasperating. (Now they want verification of your income and employment status? But you’ve already sent documentation a dozen times!) Be sure your bank or credit union is prepared to wire funds from your main account to an escrow account that you need for a successful closing day. Your agent and the mortgage rep will offer you guidance throughout this phase.

Don’t neglect the final walkthrough. It verifies that all will be as it’s supposed to be when you move in.

Welcome home!

Congrats on your new home! Here’s how you’ll get your deed.

Every Home Buyer Has a Unique Situation.

It’s your future. And a deed can make it a better one. There are always people who will tell you This is not the right time to buy. Just keep in mind: rises in home prices are expected to continue. So, waiting for the perfect market or the perfect home is unlikely to be anyone’s best life plan. Starting out is all about getting a reasonable deal, not perfection.

Deeds.com cannot give case-specific real estate advice. What we can do is let you know the steps to expect. This way, you can begin the due diligence journey yourself.

Very best wishes in the next chapter of your life, on your terms.