Single mothers often get confused when making the decision of either buying or renting a house for them and their children to live in. It's ok to be confused because making the decision to buy or rent a home will be one of the top 3 decisions (in terms of money and importance) you will make as a single mom. We are here to make this decision easier for you.
You must firstly decide which option is more feasible for you. Buying and renting both have their own short term and long term costs which is why it's important for you to analyze them before making a decision. Figure out how much it will cost monthly to purchase a house within your estimated price range. Be sure to include all the possible expenses that might be incurred in this process. Then subtract your current monthly rent from that total. This will at least give you an estimated amount that you have to pay if you buy or rent a house.
After figuring out the amount to pay on a monthly basis, create a new bank account and on the first day of each month, deposit the amount you calculated. Carry this on every month for 6 months. If you feel stressed out or are late in making payments, then you might not be financially ready to become a homeowner. But nothing's lost, you can still take that money out and treat yourself and your kids out to a nice dinner. You deserve a pat on the back for assessing the feasibility for this big decision. You had the patience and maturity to figure out whether it's a smart choice or not. You just avoided making a huge financial mistake because money saved is money earned. As a single mother, there are endless other places to spend that money so you can use it where it counts.
On the other hand, if you were able to make the payment of the amount we calculated above, that's a sign that you can afford to buy the house you want. As long as you made these payments on time and didn't have to go through any drastic measures to make them, you're fine. In addition, you have an extra amount of money saved in your bank already after carrying out this activity for 6 months. This can give you a head start in paying your closing costs on the mortgage or buying the new furniture for your home.