Applying for a mortgage as a single parent is easy as long as you have the right approach to your application. While you might need some guidance on applying, it shouldn’t be too much of a problem. Granted, there are challenges to getting a mortgage as a single parent, such as meeting affordability checks on a single income while supporting children.
Still, many mortgage lenders are flexible with their offers. Each one also has its own unique scoring system, so it’s all about finding the right one for you. Moreover, getting the right professional advice before applying can make or break your deal.
If you can’t find a lender that works for you, you can apply with a specialist lender instead. The latter provides mortgages to applicants under challenging circumstances, such as single parents with low incomes.
While getting a mortgage as a single parent is not much different from getting one as a joint applicant, there is one determining factor to get approval. The main challenge to getting a mortgage as a single parent is passing the affordability part of the assessment, which can be challenging when you have a low income. On top of that, you are also raising one or more children.
Mortgage Affordability for a Single Parent
As stated above, the biggest challenge to getting a mortgage as a single parent is meeting your lender’s affordability criteria. It’s normal for single parents to work part-time or have a low income due to their responsibilities as a parent. In consequence, the amount approved to you might be limited.
Most lenders approve about three to five times your annual income, but that could decrease depending on how many children you have. Because you have many dependents, the lender will limit the amount to ensure you can afford the mortgage.
However, if you only have one child and minimal outgoing income per month, you may be eligible for a more considerable loan amount. Your income, outgoings, savings, and debt are assessed in the debt-to-income ratio, with your complete financial profile being the determiner of your affordability.
Mortgage Lenders for Single Parents
With hundreds of lenders in the market, how should you choose the right one? Where do you start? While there are no specific lenders for single parents, it’s best to go to a specialist lender if you are in a difficult financial situation.
If you approach lenders directly, you risk being declined, especially when you don’t have a prepared application. So, it’s best to get access to potential lenders and understand how each one makes their assessments.
Getting professional mortgage advice can also help you find the most suitable lenders. In addition, a mortgage advisor will ensure that you get the best deal for your case.
Getting a mortgage as a single parent can be tricky if you don’t know the right approach. There are several challenges that you need to overcome, especially the affordability criteria of your application. So, if you are a single parent with a low income or more than one child, it’s best to get expert advice from a professional so you can get the best deal you deserve.
At PaloRATE, we help clients find the best home loans in Bellevue, WA, with competitive interest rates and closing costs. We will guide you through overcoming roadblocks that can arise in securing a loan and serve you with the utmost honesty, competence, and integrity. That is because we are committed to understanding your financial situation and finding the best mortgage deals for you. View live rates in your area with PaloRATE today. Get in touch with us and see how we can help!