Are you brave enough to buy a home while engaged?
Whoever coined the phrase “Bridezilla” must’ve been referring to the bride (or groom) who was juggling wedding planning with homebuying.
Believe it or not, many couples avoid the chicken and egg scenario (what comes first, the wedding or the house?) and decide to do both processes simultaneously.
It sounds crazy, but if you have a system and some professional guidance, you can be successful.
Read on for our tips to get you from chaos to homeowning spouses.
It all comes down to money matters
Since the first step in a home purchase is getting a loan, you’ll need to decide if you should both apply or just one of you.
If you go for the joint mortgage, the lender will combine both applicants’ income, assets and debts. If one of you has a lot of debt, it will weigh down the application.
If, on the other hand, you’re like the average couple, where one of you looks better on paper than the other, perhaps that one should apply for the loan.
In many cases, one half of the couple has good credit but a lower income than the other. The lower income limits the amount of loan you’ll qualify for, while the high credit score may help you get a better mortgage rate.
You may want to sit down with your financial professional for the best advice on how to approach the mortgage application process.
You must consider the unthinkable
Although it may be unthinkable right now, there is a chance that you may not make it down the aisle. If you don’t, you will be among the nation’s 25 percent of failed engagements (according to Time magazine).
So, even though it’s unthinkable, you should be prepared for it, just in case. The best way to do this is to meet with an attorney about how you should divide the property, should a breakup occur. This is especially important if only one of you is on the home’s title.
To be extra safe, have your lawyer prepare a written agreement that both of you can sign.
While it’s not nearly as romantic as planning a honeymoon, planning for the successful purchase of a home before you tie the knot is important.
Feel free to reach out to us with any questions you may have. We love to talk about real estate!
Powered by WPeMatico