Newlyweds who want to buy a house often feel overwhelmed and confused. Read this guide to understand what your future holds. You’ll know exactly what steps to take before contacting a realtor and locking a property with a down payment.
1. Check Your Credit History
People often believe they’ll get a combined credit score after getting married, but your credit scores stay separate because they track personal spending histories. Compare your current scores to determine which is higher and will get the better loan offers.
2. Review Affordable Down Payment Options
You don’t have to put 20% down on a house to secure it. The myth can intimidate newlyweds, but many loans have more affordable down payment options. Compare private loan company options with the Federal Housing Administration (FHA), which requires only 3.5% down on a house if you qualify.
3. Decide Who Signs the Mortgage
Married couples often sign for a mortgage together, but you don’t have to. You might get a better loan with one person’s credit score. Discuss financial histories and credit scores and determine who will sign for your home loan.
4. Set a Monthly Budget Together
You shouldn’t wait to expand your family or reach another milestone to create a monthly budget. Talk with your spouse about how you’ll split your income between bills, fun spending and savings. You’ll need to have one ready for your house since homeownership will add a mortgage payment, homeowners insurance and utilities to your spending.
5. Create Your Home Priority List
What does your dream house look like? Does it match your spouse’s vision for your shared future? Create a list of home features you both want, like:
The number of bedrooms
The number of bathrooms
The yard size
Some features like appliances can change quickly — features like the floor plan can’t change without sizable renovations. Creating this list before searching the housing market narrows your options so you find your ideal house faster.
Prepare to Buy Your Home
Newlyweds should know these things about home buying to have a great experience. Take your time and talk things out to find your dream house in no time.