You’re now newly wedded and you have fully boarded the train of happily ever after. Should you now buy your dream house with your spouse and begin your life journey?
Usually, friends and relatives urge newlyweds to ensure they buy their home soon enough instead of wasting money by paying rent. However, is it the best decision to be pursued? Purchasing a home to settle with your spouse and future family depends on how fully prepared you are for the home. Purchasing a home when newly married may not be a bad decision, as well as it may not be the most prudent decision to make. There are several factors to consider before purchasing a home, but more important is your current financial capability.
Are You Financially Able to Purchase a House?
Most newlyweds are not able to fully purchase their own home. For this reason, they are set to take large loans to buy a home that will cost them in future. However, there are other couples that have funds put in place to help in paying the down payment of the mortgage, and they are debt-free. In that case, the couple can get their own house and enjoy their marriage.
On the contrary, if perhaps you’re not financially able to buy the house, it’s prudent to take caution and plan to get a house when you’re fully ready. Being financially ready involves:
- Having a much higher credit score to get better mortgage rates.
- Have emergency savings of the house expenses up-to 6 months.
- Be debt free
- Provide at least 10% of the mortgage cost as a down payment.
Moreover, it’s important to note that buying a home impulsively in your first year of being married may not be the best idea, This is because you’re new to the environment and you’re not sure whether it’s the best place for you to be with your growing family. You will need time to assess the available amenities, security, schools, distance to your workplace and the general environment of your neighbourhood. This may take more than 6 months, for you and your spouse to decide where your ideal home should be.
Once you have an idea of where you want to buy your dream home, there are several factors to consider this includes:
- Improve your Credit Score
As initially mentioned, the credit score of both couples will make or break your dream of purchasing the house. For this reason, months prior to buying a house off the plan or a home that’s newly available, ensure your credit score is in good standing. Often, mortgage loans are granted to people with credit scores of 500s to 600s, however, with a better credit score you may get a much nicer house and deal.
- Clear Your Debts
Presence of unpaid debts will portray the wrong message to your loan lender and may result in being denied the loan. Therefore, ensure you pay on time your debts or clear them all together this will ensure you have a positive encounter with the lenders.
- Save for the House
In most instances, individuals purchase houses without being fully prepared on how much they will be required to pay in the first year. For this reason, to avoid being in deep debts you need to save up for your first-year mortgage fees.
- Budget for your Household
Creating a monthly budget and sticking to it prior to buying the house is important. This is because; you will be able to save a sum of money that will help in acquiring the house while still running the household expenses.
Acquiring a new house or plans to buy a townhouse for newly married coupled solely depends on how ready financially they are set. With the tips above newlyweds can decide what option is the best in their situation.