If you think that getting married is the most expensive part of the wedding, think again. If none of you have a purchased property, then buying a property together as a married couple will be your largest expense. However, you are purchasing an asset for your future – and a potentially stable investment for the entire family.
To pick the right property and find the best mortgage loanshould be on top of your priority list. Previously, you may have lived at home with your parents, rented with siblings or friends, rented together, and/or owned your own property as an individual.
After getting married, you will obviously want to live together. This is a very exciting time in your life which despite its difficulty, should be enjoyed in any case. This quick homebuying guide for married couples should help you.
Assess current financial status. The first step is to look at both of your financial situation. Both of you need to compromise on money matters and learn to co-mingle or co-manage your money.Also, depending on where you want to live, mortgages can cost you less than rent. However, you need to save for a downpayment. Seek out what you can afford and reach an agreement now than face a surprising disagreement down the line.
Consider your choice of location. Aim for a location that suits both your current lifestyle and the ones you will likely develop in the future, especially if you’re planning on having kids – if so, better to plan for a property that will be suitable for the children now instead of buying a single bedroom home and worrying later. Take note that selling property also incurs high transaction costs for inspection fees, stamp duty (tax), legal fees, and more.
Check and improve your credit. When you set to find the best mortgage loan available on the market, take note that your credit will play a big role on the amount of loan you can borrow. There’s also a chance of fraudulent activity or errors that could keep you from getting a better interest rate/loan or qualifying at all. If you see any mistake, leave comments so the loan lenders can evaluate it against the banks. Building up positive credit is quite easy.Pay down credit cards and always make on-time monthly payments.
Get pre-approved. A loan pre-approval is a document that will show how much your preferred lender is willing to lend you for you’re the property purchase. This is based on your combined financial situation. You may obtain your pre-approval through a mortgage broker, as each lender uses different rules and a mortgage broker can assist you in comparing different home loan options.
Property ownership type. There are two types available for couples: joint tenancy and tenants in common. Joint tenancy, in a nutshell, refers to owning the house jointly together equal in everything. In the event of the death of one, the entire property is transferred to the surviving partner. Tenants in common is where home ownership can be split in proportion between owners, which means the surviving partner won’t have full control of the house unless they are the recipient of the property share through the estate.
Buying property as a married couple is a team effort (naturally). Since nothing can derail a marriage faster than financial issues, make sure to work together and keep your purchase reasonable. Give yourself ample time for planning before you plunge ahead – this will ensure a steady home buying experience that translates to a happy marriage and a home to call both your own.