What You Need to Know about buying a Home Prior to Marriage
One of the toughest decisions that singles have to make is whether to buy a house before or after marriage. Purchasing houses before marriage is an aspect that you need to take time and think over. A study done by experts discovered that around 25% of young people (18 to 34 years old) prefer buying houses before marriage.
If you are potential couples planning to purchase a house before marriage, it prudent to take steps that will protect you during and after buying the house.
Many individuals fail to take precautions because they perceive discussions on finances and legal cover to ‘unromantic’. You can end-up in deep regrets if you fail to make informed financial decisions like acquiring property and things fail to work later.
This is why many people end-up selling the house after the break-up because of poor planning and legal precaution. You need to take precautions during courting as if you are divorcing
Therefore purchasing property as unmarried couple will require honest evaluation and careful planning.
Factors to Consider before Purchasing Property as unmarried Couple
Current Finances
You need to evaluate each other’s capacity as unmarried couple; so that you can determine your participation based on your separate capacities. You should approach property purchase as a serious business transaction
This will require both of you to be open about your credit scores or debt, income and other obligations. This information is paramount when you will decide to access a mortgage.
Credit Scores
The credit score is a significant factor for both of you to secure a mortgage a good deal in the real estate property for sale market. You mortgage rates will increase in tandem with your credit score. It will be significant in negotiating for the mortgage.
As unmarried couple, your credit scores are considered separately while after marriage they are lumped together. This is why it will be advisable for the person with the best credit score to apply for the mortgage rather than average lower credit score.
Your Home preferences
It is good to agree as unmarried couple on your house preferences, so that you are in the same page after marriage.
Apart From The House Preference, You Should Also Agree On The Following Issues:
- What location do you prefer as a couple, is it in big city, a small town, or a home in the country?
- What kind of house do you go for, will it be a re-sale or a newly constructed house, is it an antique or fixer upper?
- What kind of price are you both comfortable with? The mortgage broker may try to persuade you to go for more; however, you should both go for what you are comfortable with.
- What kind of neighborhood do you prefer after narrowing down on the location? Do you prefer a large subdivision, busy street or a country road? It is normal for couples to have a divergent preference on neighborhood.
- What kind of school systems do you prefer for your children?
- Will be commuting be convenient to both or one of the parties?
