A Guide to Purchasing a Home on Your Own

Buying a home is possibly the largest and most important purchase you’ll make in your lifetime. While 62% of homebuyers in 2024 were married couples, single buyers are a significant and growing demographic. Between July 2023 and June 2024, the number of single, female first-time homebuyers increased 5%. Overall, single women made up 20% of all home buyers in 2024, while single men accounted for 8%. 

For first-time buyers, navigating mortgage applications and financial requirements can feel intimidating. And for a single buyer the process can be even more challenging, without the benefit of a joint income or shared financial responsibility. However, homeownership can give you more freedom, flexibility, and a sense of fulfillment. And if you’re entering the market solo, there are numerous resources available to help you succeed. This guide will help you prepare to buy a home as a single homebuyer.

First Key Considerations for Solo Homebuyers

Preparing to buy a home begins long before you attend your first open house. Making the decision to enter the housing market as a solo home buyer requires a deeper understanding of your financial situation, the current real estate market, the homebuying process, and your long-term goals. As a single buyer you may face unique challenges, but with smart preparation you should be able to confidently navigate the homebuying process.

Questions to Ask Yourself

Before you begin house hunting, you must first determine if you are ready to buy a house. This means asking yourself tough questions, doing some self-reflection, and possibly changing some lifestyle habits to make room in your budget for a new home.

“When you’re buying a home, especially as a single person, it’s key to track your numbers,” says Taylor Kovar, a certified financial planner (CFP) based in Houston, Texas. “You can’t manage what you can’t measure.”

To get an accurate picture of your finances, ask yourself these questions:

• Will I be approved for a loan that matches the home prices in my area? 
• What mortgage payment can I comfortably afford on my current salary? 
• How much have I saved for a down payment? 
• Do I have an emergency fund to cover unexpected house costs? 

Answering these questions will help prepare you for the mortgage application process. “Before you start shopping for a home, make sure you’re clear on how much you’ve saved for the down payment, your monthly expenses, and the costs that come with owning a home,” Kovar says. “Things like utilities, yard work, repairs—you need to think about all of that before jumping in. The more you track and measure, the more confident you’ll feel with your home-buying decisions.” 

Homeownership involves much more than the initial down payment and monthly mortgage payments, so understanding your monthly income and spending is crucial to determining if you can afford to buy a home on your own.

The Current Housing Market

The next step is to better understand the current housing market, especially in the area where you plan to buy. Research average home prices, current interest rates, and trends in the submarket. 

Owning a home is projected to get more expensive, with the average home price in the U.S. expected to reach $426,000 by the second quarter of 2026. As home prices rise, single buyers will need to save more for a down payment. According to the National Association of Realtors (NAR), first-time homebuyers make an average down payment of 9%, which equals $38,340 for a home at this price. If you decide to put down the traditional 20%, it would require saving $85,200.

“Single applicants may find their loan amounts limited and interest rates higher due to reliance on a single income and credit profile,” says Coleton Pantley, a Seattle-based real estate agent. “This financial disparity can place single buyers at a disadvantage in competitive bidding situations.” This is why it’s important to be prepared. As you wait to find your dream home, continue to monitor your finances and stay informed about the market where you wish to buy, including current interest rates and how they impact the homes you can afford in your market.

Assess Your Financial Situation

One of the most important steps when preparing to purchase a home as a single buyer is to assess your current financial situation. “Before buying, make sure you’ve got a solid budget in place. With a single income, you really have to plan for everything,” Kovar says.

Calculate your DTI ratio: Knowing your income and monthly expenses will help you determine your debt-to-income (DTI) ratio. Lenders use your DTI to determine what loan payment you can afford and what amount you should be approved for. This calculation shows what percentage of your income goes to debts each month. The lower this percentage, the easier it will be to get approved for a mortgage. Try to keep your DTI ratio under 35%, though you still may qualify for a mortgage with a DTI ratio up to 43%.

Check your credit report: Knowing what’s on your credit report will save you time and give you a realistic view of your approval odds. You can check your credit report for free, and doing this early in the homebuying process gives you time to fix any inaccuracies or dispute charges. 

Examine your savings: Homebuying costs include more than the down payment. Consider closing costs (typically 2-5% of the purchase price), moving expenses, and annual repairs (plan for 1-4% of the home’s value each year). “Don’t just think about the down payment—think about all the extra stuff that comes with owning a house,” Kovar says. “Make sure you’ve got enough saved for that emergency fund, and don’t forget about the unexpected costs like maintenance.”

Think Long-Term

Buying a home is a long-term commitment, so think about where you see yourself in the future. “Many single buyers, especially younger ones, often choose homes they can’t grow into,” Pantley says. “A small condo might feel perfect at first, but life circumstances like marriage or children come sooner than expected.” Consider how your relationship status, future career aspirations, and family planning might factor into your homebuying decision.

Getting a Mortgage on Your Own

Create a checklist of tasks you must complete to apply for a mortgage, from organizing your budget to collecting all the necessary documents. Knowing what lenders look for will help you better prepare for the mortgage application process. 

Lenders typically want to see a DTI ratio under 35%, a credit score of 620 or higher, and on-time payment of your current debts and financial obligations. Have the following documents ready to go: government ID, Social Security number, pay stubs, W-2 forms, proof of income, debt statements, investment accounts, tax returns, and recent bank statements. 

If you’re concerned about your chances of approval for a conventional loan, consider alternative options like an FHA loan, which allows for a smaller down payment and may approve applicants with a lower credit score. Just be sure you understand how an FHA loan’s up-front mortgage insurance premium and monthly mortgage insurance premiums work.

How to Afford Buying a House on Your Own

Understanding your finances and the local housing market will help you be realistic about what you can afford. “It’s crucial for buyers to stay within their means and aim for a purchase price that’s at or below 80% of their maximum pre-approval mortgage rate,” Pantley says. 

Many first-time single buyers make the mistake of taking on mortgages that account for too high a percentage of their monthly income. “A good rule of thumb is to aim for your housing costs to be around 28-30% of your gross income. Even though the bank might tell you you can afford more, it’s really important to keep things comfortable,” Kovar says.

Building a Strong Support Network

Before you purchase a home, build a team of trusted experts that will help you along the process. This includes real estate agents, attorneys, home inspectors, financial advisors, and mortgage experts. “One of the biggest errors is choosing a subpar real estate agent. A skilled agent can save tens of thousands of dollars through effective negotiation and offer strategy,” says Pantley.

To find a good real estate agent, search real estate websites for professionals who are familiar with your neighborhood and can work within your desired price range and preferences. Ask prospective agents for references and verify their credentials by checking their state licensing number to confirm their qualifications and track record.

The Bottom Line

“Buying a home on your own is doable; just make sure you have a budget, have enough saved, and take your time,” says Kovar. With proper preparation, tools, and professional support, buying a home as a single person can be incredibly fulfilling. Understand your finances, research the market, and know your loan approval odds so you can feel better prepared.