Congratulations! Now that you’ve finally decided to tie the knot, it’s now time to take things up a notch and start planning your life together as a married couple. As newlyweds, you want to make sure that your decision to buy a property doesn’t affect any of your long-term financial goals. Before you start searching for your dream home, it’s essential to consider several factors to make the right choice.
There are a few things that come into play when buying a house as a couple. So before you get swooned over by marble countertops or excellent wooden floors, it’s best to sit down and ask yourself these questions.
Back when you were still dating, you probably talked about everything under the sun, from hobbies to favorite movies. But as newlyweds, it’s now time to talk about serious matters that are far less romantic than you hoped: your credit history.
Most couples these days discuss these matters before they get into marriage. Some even say that it’s a make-or-break factor that’ll significantly affect their decision to tie the knot. But for some couples, discussing their credit scores seems taboo. Unfortunately, if one of them has a substantially lower credit score than the other, it could potentially affect the couple’s ability to get a house loan.
Knowing each other’s credit scores before visiting a lender is essential. Doing so will allow you to work on each other’s credit scores to get an ideal rate.
Your future goals can affect the type of loan and property that you can get. For instance, if you want to stay in the same property for the next ten years, a 30-year mortgage with a fixed interest rate is the most practical choice.
Meanwhile, if you’re planning to move into another house in the next couple of years, then considering other options is better. For instance, getting an adjustable-rate mortgage can provide you with a lower interest rate than a fixed home loan for a particular period, such as three to seven years. After which, it can either move up or down, depending on the market indexes.
You’ve recently decided to get married, is there a need to discuss kids? Yes! This question will have a considerable effect on your finances, which is fundamental for determining how much you can afford a property. One of the tips for first-time homebuyers is to get a mortgage that shouldn’t take more than 30% of your monthly income.
Also, remember that you could be managing the same home loan for 30 years. So you shouldn’t solely rely on how much your family earns now. Instead, it would be best to consider the salary you’ll have in the future. What will happen if one of you has to stay at home to raise your kids? It could potentially slash off half of your monthly income.
When you’re trying to plan out what home loan to apply for, it’s always best to play it safe. Just because you get a loan pre-approval for $500,000 doesn’t mean that you’ll look for a house for the same amount.
These are only a few of the questions that you can ask yourself when buying a house as newlyweds. If you’re having a tough time deciding, talking to reliable mortgage companies in Boca Raton is your best approach.
Reach Home Loans consists of trusted loan officers who can help find the right mortgage that suits your needs. Send us a message now so we can help.