As if getting married was not a commitment big enough, newlyweds have to dabble with the real estate market as well. Many face the dilemma whether to buy a home before or after they get married. Since the ceremony will probably require your full attention, it might be wise to purchase a home before you get married. However, this is not a simple process and there are 5 things you have to be aware of and pay special attention to.
The price
The price is a significant factor, but it isn’t the only one. The keyword, in terms of the cost of the property, is affordable. Don’t buy under your living standard, neither go over it. Aim for a real estate both of you can afford. If you are unsure about the ability to pay off the mortgage, then a neat solution would be to adjust the monthly installments to the salary of only one spouse. This way, you will not be in a huge problem if one of you falls ill or loses his/her job.
Neighborhood
If you are considering urban housing, then the neighborhood factor is crucial. Only if you plan to purchase a ranch in the Australian Outback will you need not care who lives around you. You should conduct a quick research on what to expect when it comes to your new neighbor’s habits, the crime rate in the area, and the traffic. No man is an island, and neither is your home. A good home security system can give you a little extra peace of mind regardless of your surroundings. Once you move in, it is highly recommended to pay a warm visit at least to your first door neighbors and introduce yourselves. Many people would be thrilled to find out that a newlywed couple had just moved in next door. This way you can expect help in all kinds of situations, both pleasant (a back garden barbecue) and those not so pleasant (smoke coming out of your house while you’re away).
The legal aspect
A secure neighborhood will mean little if the legal aspect of the purchase is wobbly. Choosing a good real estate agent is often not enough and you will most certainly need additional help to secure the deal. In Australia, for example, there exist settlement agents who are lawyers specialized in the buying and selling of properties. Australians always look for these solicitors when buying property. For instance, someone living in Sydney will find a conveyancer in Parramatta if he wishes to purchase a property there. Couples make for a large percentage of their clientele since the experience of these conveyancers proves valuable in drafting the right kind of the legally binding document.
Credit scores
Presuming that you won’t be able to cash out the entire house right away, you are probably going to decide to apply for a bank loan. In order to determine the mortgage rate, the bank is going to check your credit score and the higher it is, the more convenient loan will you be offered. By “you,” we mean singular here, since buying a house before marriage means that it can be done by only one person. This way you increase your chances of getting the lowest possible mortgage interest rate. Another thing to keep in mind, especially if you are getting married young, are student loans dating back to your college days. They can weigh down any new loans you would want to get, including the one for the house.
The property itself
A house is more than its exterior and the color of the walls. Be aware that you are buying for two people; a number of family members that is likely to increase. Think about the needs of your spouse. Look around the garage and the kitchen with the same level of meticulousness. There isn’t going to be a separate space within the house that belongs to you, the whole property in now yours to take care of. This purchase is not for your present life situation, but for the future, so don’t forget to plan. Buying a home before marriage is really one big investment.
Having read these 5 short tips on buying a home before the wedding, we hope that you are ready for the first biggest step you are about to take. The second would be saying “yes” at the altar. After that, it’s off the newly purchased family home.