Getting married is a significant event in any person’s life, and getting a mortgage may be just as, if not more, significant in the short-term. If you and your new spouse are thinking about buying a home together, there are few things you should know before applying for financing or signing that purchase offer.
Do You Both Want the Same Thing From a Home?
Like with any marriage, a mortgage is usually a long-term commitment. You most likely will have a 30-year loan that may not be repaid until you are ready to retire, assuming that you stay in that house for the entire loan term. Regardless, you will stay in your first home for at least three years if not longer, which means that both parties need to make sure they have a place they enjoy calling home.
Where Does the Upfront Money Come From?
One of the biggest reasons why couples break up is because of disagreements over money. When you get a mortgage, you will be required to put at least 3.5 percent down, and up to 20 percent down if you get a conventional mortgage. Additionally, there are closing costs to consider, which could be another $10,000 or more. As this is the first financial test that you and your spouse will go through, make sure that you take your time to decide where the money will come from before you are obligated to pay.
You May Not Be on the Deed
In marriage, two people become one unit working toward the same goal. However, the mortgage lender only wants someone who demonstrates an ability to repay their loans. If you don’t make enough money, or don’t have the credit to qualify for a loan, your spouse may be the only person on the loan and the deed. Depending on where you live, you may or may not be able to make a claim on that property in the event that you divorce your spouse. For those who don’t think that big banks will lend to them, it may be a good idea to look into borrowing from a credit union mortgage.
Buying a home is not a decision to take lightly. Yes, owning a home instead of renting can be appealing, but owing a home comes with more responsibility that you need to be ready to handle. The good news is, proper planning and good communication can increase the odds that a couple is on the same page before committing to such a long-term obligation.