First Time Single Parent Home Owner Mortgage Advice
First time single parent home owner mortgage can often be quite difficult to be accepted for. When you are a single parent you have to cover many payments alone which include healthcare, transportation, food and mortgage payments.
The government now have a mandated child support payment scheme which take care of many of these bills for single parents but they have have to earn enough money to pay for these items monthly. The payments generally range from $4000-$6000 per year.
From combined incomes, the single parent needs to support the family through of her income. This is exacerbated when the partner does not contribute to the expenses. One needs to take on additional jobs to be able to address the growing expenses of the family.
This leads to feelings of not having influence over one's life and a feeling of inaptitude. Being financially free is the biggest challenge of single parents to date. Being debt-free is a large factor in happiness amongst single parents. One of the most notable debts of single parents is the mortgage.
The first time single parent home owner mortgage has significantly increased over the last twenty years. A current study conducted in Britain stated the debt variation among a home-owning single parents and single parents who rented apartments.
Findings showed that the debt of single parent homeowners are at 13% whilst single parents who rented apartments was at 25%. Either way, the study shows that single parents are struggling with mortgage payments. Various alternatives, such as shifting to a complex to decrease payments or living with other single parents have been done, nevertheless, does minimal, or no assistance in the mortgage payments.
One way of securing financial independence, in terms of mortgage payments for single parents, is having a strong income power. The single parent needs to analyze his finances to be able to find out what works in terms of the mortgage payments. Commonly, the single parent realizes that he/she needs to take on extra jobs in order to sustain the mortgage payments.
In choosing the correct mortgage for single parents, one needs to consider the following, current financial standing, dynamics of ever changing finances, how long one intends to keep the house, and the alteration of mortgage payments.
One needs to take into consideration fixed mortgage rather than yearly mortgage and refinancing for example. The bank also reviews one's credit limit, when the single parent applies for this.
For easier Loan approvals, iHomeMortgage.com recommends to follow the following:
Asset items
-Bank statements for the previous two months on all accounts
-Statements for two months on all stocks, mutual funds, bonds, etc.
-Copy of latest 401K statement
- Explanations for any large deposits and source of those funds
-Copy of HUD2 Settlement Statement on recent sales of homes
- Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
- Gift letter (if some of the funds came as a gift from a family member
Income items
-W2 forms for the last two years
- most recent pay stubs covering a 30 day period
- Federal tax returns (1040s) for the last two years, if:
-You are self-employed
- earn regular income from capital gains
- earn sizable interest income, etc.
-earn more than 25% of your income from commissions or bonuses
-own rental property
-you are in a career where you are unlikely to take non-reimbursed business expenses
-Year to date Profit and Loss Statement (for self-employed)
-Corporate or Partnership tax returns (if you own more than 25% of the business)
- Pension Award letter (for retired individuals)
-Social Security Award (for those on Social Security)
Other
-Copy of purchase agreement
-Documented receipts of child support
FHA Loans
-Copy of Social Security Card
-Copy of Driver's License
VA Loans
-Copy of DD214
Refinances
-Copy of most recent monthly mortgage bill
Credit Items
-Landlord's name, address, and phone number
-Explanations for any of the following items which may appear on your credit report:
-late payments
-credit inquiries in the last 90 days
-charge-offs
-collections
-judgments
-liens
-copy of bankruptcy papers
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