Should we Buy a Home before Marriage or Wait?

Real Estate

This is a question that many couples planning a future together mull over. Is it ok to buy a home before making everything official or is it better to wait until the marriage is official? Well, there is no right or wrong answer to this question. Buying a home is convenient whether the two of you are married or not. The process can be draining if you have work commitments and a wedding to plan but owning a home is quite fulfilling and can add to that bond the two of you share. Also, once you own a home you are building equity!

There are home buying steps which should be considered when deciding to purchase a home! We hope this will help to anticipate what you will experience during the home buying process.

 

What are the steps?

 Before you begin the home search process, sit down and have an agreement on the buying points before hiring a real estate agent.

This may seem obvious, but it is not always the case. There have been instances where one person agrees to the desires of the other party against their better judgment. These issues often come up in the future and they usually never end well. Some of the things that you need to agree on include:

·        The type of home that you plan to purchase, whether it be a single-family, condo or a townhouse.

·        The neighbourhood that you have decided to live in. There are tips for, including ensuring you check out the school district!

·        What can you afford? Be sure not to make home-buying mistakes including not meeting with a lender before starting your home shopping! 

When choosing the type of home, go over the details and discuss all the features that you both want in a home. The two of you may differ on certain features, but it is always wise to reach a compromise before progressing to the next stage. 

 

The same applies to the neighbourhoods. Have a list of the top areas you want to live and make your Home Buying plans with those neighbourhoods in mind. When it comes to picking the price range, you can have a discussion with your mortgage lender and choose a home repayment plan that you can afford comfortably! 

 

Financial Contributions

Owning a home comes with overhead starting with the down payment and closing costs. There are also recurring costs such as insurance, utility bills, and maintenance costs just to mention but a few. It is important to sum all the costs and decide on the ratio both of you are going to contribute. 

 

How Will You Take Title?

There are different on how you plan to take the title of your property. This is an important discussion to have prior to embarking on the home buying process. There are a few different ways to take the title and they include Tenants in Common, Joint Tenancy or Joint Tenancy with Right of Survivorship. You may consult a tax advisor or a Real Estate Attorney for clarification on how to take the title of the home.


What Type of Mortgage are you Considering?

This is most likely the number one step! Your Mortgage lender will be able to provide guidance on what you can afford, and this will lead you to shop for your home within your price point.

Your Realtor will most likely have a few referrals for you for a lender. The lender will discuss the different type of loans and interest rates. Also, you will understand when a lender locks the rate to ensure you obtain the most desirable interest rate. Some of the loan packages may include the following:

·        Fixed-rate mortgage 

·        Adjustable-rate mortgage 

·        FHA Loans

·        VA Loans

If you are obtaining either an FHA or VA loan, the complexes that you may be considering will need to be approved, so this is another factor. Condo complexes may be something that you are considering, and condos do offer many benefits to buyers.

  

Final Thoughts

Ultimately it will be up to you whether or not you purchase a home, you might decide it is in all parties best financial to rent versus buy, but now a days the rents are even higher than what a mortgage payment can be! There are definite financial implications that need to be closely evaluated prior to purchasing a home.