Homebuying Tips for Women Who Go It Alone
Before the seventies, it was nearly impossible for a woman, married or single, to even qualify for a mortgage. (A woman who wanted to take out a home loan often had to sign a "Pill letter" or "baby letter," pledging that she would not or could not get pregnant–the assumption being that motherhood would immediately render her financially unstable.) That’s so horrible!
Times have changed, and today more and more single women buy homes, alone. Buy now, marry later. That’s the credo of loads of local single women who are taking the plunge and committing to a mortgage on their own. What’s motivating them? The market. This is a great time to buy.
While single women may not need a guy to help them, it can’t hurt to have a little advice from experts. Before you sign the deed, consider these guidelines when it comes to making your solo purchase.
Check Your Finances. That’s not just paying off your maxed-out American Express. Consider student loans or other debts, and whether you can get a mortgage that leaves wiggle room in your budget for repairs and maintenance. And shop around for the best financier. Compare prices and rates and compare terms.
Pick Your Team. You need somebody that can guide you through the maze. The right real estate broker. The right financial adviser or mortgage broker. Another thing to have is a very good real estate lawyer, because there are a lot of questions that first-time buyers are not going to know to ask. Also reach out to pest and mold inspectors, contractors and insurance reps. You don’t want to spend thousands on repairs later on.
On the Hunt. Be patient, as your search could take months. "The average person can see 30 apartments to buy one. I saw about 100," says Aelion. "I had a very specific price point. I could not afford to buy the first thing I saw." And dress to impress, as if on a job interview. "Your appearance suggests to a real estate agent whether you’re a serious potential homebuyer or not," says Musselman.
Stay Strong. Single women face additional obstacles when shopping alone. "People go, ‘Is it your husband I should be discussing this with? Will someone else be putting down the down payment?’" says Aelion, who recalls one co-op board, uneasy with her single status, asking for three months’ maintenance money up front. "Don’t be wishy-washy. Know what you want. Ask good questions. You have to present yourself in a way like, yes, I actually do have $1 million to pay for this place."
Bidding Wars. Make a winning offer. "I lost out [on her first bid] because I got a little too prideful," says Musselman. "I only offered what they were asking, and I should have offered more because it was a market where they were getting more than their asking price." So aim high, and never give a round number. If you want to offer $510,000, go to $511,000. "Everyone gives round numbers," says Teplitzky. "If the bidding war goes to best and final [offer], you never want to risk it with a round number."
Closing. There are a lot of fees and paperwork involved in transferring titles from one owner to another under serious deadlines, so get your legal and financial team up to speed. And check over your new place one last time before signing on the dotted line. "There was a hole in the door of the bedroom that wasn’t there when I saw it the first time!" remembers Matos. "So I got money back for the door." Now bask in the beauty of your new home. "I pay $2,000 a month between my mortgage and maintenance, and that’s how much I was going to pay to rent an apartment."
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