Buying a home, especially a first home, can be an overwhelming experience.
But buying a home as a single person can be even tougher. On paper, the process is the same, but for a single person the entire process is a solo high wire act.
There is no partner for discussion and sharing worries. There is no one there at 2 a.m. the night before closing to help get through the inevitable jitters. There is no second income to rely on if an illness, layoff or some other problem strikes.
But buying a home need not be any more difficult for a single person than for a couple, local professionals say.
In fact, more single people, especially single women, are buying their own homes than ever before, said Larry Poll, vice president of Guaranty Mortgage Co.
“I first noticed it a few years ago, when there was an increase in the number of first-time home buyer programs,” Poll said.
Poll estimated that 30% to 40% of Guaranty’s loans this year have been made to single home buyers. The mortgage company makes more than 2,500 loans a year.
There was a time when banks and savings institutions simply refused to extend credit to single mothers.
“About five years ago it would have been uncommon to see a single mother purchasing a home, but now we don’t give it a second thought,” Poll said.
Last year, single women accounted for 32% of the home loans backed by the Wisconsin Housing and Economic Development Authority, up from 27% two years before. Single men also obtained 32% of the loans last year, up from 30% in 1995.
It’s the same all across the country.
In a survey of 20 urban areas, Chicago Title and Trust Co. found that the number of single home buyers accounted for 35.3% or 651,000 loans of the mortgage market in 1997, up from 29.8% or 528,000 loans in 1996.
In contrast, the number of married home buyers declined nearly 4% from 1.244 million in 1996 to less than 1.2 million in 1997.
Singles have an even greater role in the first-time home buying market, accounting for 42.7% of the market in 1997, up from 36.8% in 1996.
The homeownership rate for single mothers jumped from 45% to 51% from 1995 to 1997. That rate, however, still trails the overall rate of about 65%; for married couples it’s 80%, according to the Federal Housing Administration.
In addition to the increasing number of single buyers, the average age of a single person buying a home also is declining, said Steve Robell, co-owner of Competitive Mortgage Lenders in Wauwatosa.
Several years ago, single people who bought homes waited until their mid- to late-20s, Robell said. Today “we’re seeing people right out of college buying homes.”
Like anyone else, single people who want to buy a home should save for a down payment, shop for a lender by comparing interest rates and closing costs and get pre-qualified once they’ve chosen a lender.
And, for those who are short on savings for a down payment or who have spotty credit records, there are a number of flexible programs that can help.
But before looking for a house, local professionals did have some single-specific advice:
– Bring a friend.
Home buying–especially for the first time–is one of the more stressful events in a person’s life. Having a confidant nearby will help.
“It’s just more difficult if you don’t have someone to talk things over with” when looking at homes, said Roger M. Raasch, facilitator of the Wisconsin Condominium Association.
Get professional help.
Gary Swittel of Better Homes and Gardens First Realty in Milwaukee suggested that a single person may want to consider hiring a buyer agency a broker to look out expressly for the buyer’s interests.
Listing agents generally represent the seller and are restricted in what they can reveal to the potential buyer.
Also, single buyers should consider enlisting the aid of an attorney to help prepare offers and to help deal with other issues such as underground oil tanks, lead and other potential hazards.
Remember you’re choosing a neighborhood as well as a house.
Michael Holloway of Homebuyer Associates, an exclusive buyer agency in Shorewood, said the majority of his single clients are women.
About 60% of them buy in the city while about 40% buy in the suburbs. Of those who buy in the city, most buy condos, he said.
Katie Falk, of Realty Executives in Whitefish Bay, said singles “can always find a house, but first you have to find a community that makes you happy. You are not just buying bricks and mortar. Spend some time in different neighborhoods and see what appeals to you.”
You may like a house on a large lot, for instance, but are you ready for the rigors of twice-a-week lawn mowing, snow shoveling and a neighborhood where the streets are choked with minivans each weekend making their way to the local soccer field?
“Single women often worry about how they will maintain the property. If you are careful to get a home that’s in good shape and does not need big-ticket items, then it can be a nearly maintenance-free house,” Swittel said.
Single female home buyers tend to favor one-family homes, according to Steve Robell at Competitive Mortgage Lenders, while males tend to favor duplexes and apartments.
“The one-family homes definitely skew more toward the woman,” Robell said.
If maintenance is a concern, condominiums are an obvious choice.
But for those who don’t mind being responsible for maintenance of a home as well as somebody else’s, duplexes may be a good option, Swittel suggested.
“If singles want to own, but keep payments low, a duplex is a good idea.”
