“It is not the beauty of a building you should look at; it is the construction of the foundation that will stand the test of time.”-David Allan Coe
So, you have tied the knot, and now you are surrounded by the bliss of being newly married. What is next?
Well, for starters most couples would start scouring for a family home once the honeymoon is over or once the last vestiges of fresh marital bliss fade away. But how do you ensure that you and your spouse are ready to take it to the next level and buy a home? Today, home-buying remains as one of the most significant challenges for unmarried couples who have just opted to shack up, but even tying the knot would not make this process any easier.
Remember, a lot of factors come into play, and before you decide on a home, you need to consider every integral aspect involved in home buying lest you have homebuyer’s remorse after that. So, before you start going head over heels for that pretty little bungalow or fantasizing about growing your family in Cloverleaf, here are some of the things you ought to consider:
1. What is your credit score?
Prior to your married life, you and your spouse probably led separate lives and of course, different bank accounts. Most of what you earn probably went to where your next travel destination was, date nights or movie tickets. However, now that you are married, it might be a good idea to broach a subject that is far less romantic but hinged on your finances: your credit scores.
Ideally, you should have had this conversation already as it determines your ability to qualify for a loan or at least have an attractive interest rate. Knowing your credit score is crucial and is a pivotal step before you meet with a lender.
2. Where would you like to live in five years?
Your plans for the future will drastically affect the type of home that is right for you. Incidentally, so would your loan. If you and your spouse intend to stay put for at least the foreseeable future, it will make sense to have a 30-year mortgage with a fixed interest rate. However, if you have plans on moving within a few years, consider your options. With all these considered, make sure that you factor these into your search for a home.
3. Will one of you stay at home to raise the kids?
After the both of you get hitched, you might stall the discussion of having kids. After all, you just got married, why the rush? However, kids play a crucial factor in determining what type of home you should be looking for. In fact, you can consider it as the cornerstone for establishing how much you can actually afford. If you plan to have kids in the nearby future, not only would this play an integral factor in the size of your home, but it would also affect where your finances will go.
Apart from that, you and your spouse should decide whether one of you would be staying home to raise your kids or not as this would mean leaving work. Remember that would likely slash your income in half, so look into this to anticipate how much of a mortgage you should get.
4. What will happen to the home should the marriage fail?
While it is not exactly an exciting prospect to think about (especially as you are newly married), you would still need to consider all of the possible outcomes for your marriage. This is not to say that you would separate (although, that can be a possibility) but you need to think of how you would divide your assets if you either get hit with death or even divorce.
There is a myriad of types of ownership to choose from when you purchase property with your spouse, and although this is not exactly a good dinner table topic, it needs to be discussed. After all, you will never know what could happen—it is still best to be prepared.