Are You Buying Home Before Marriage – One of the major questions that come to the mind of about-to-get-married individuals is; should they purchase a house before the wedding or after getting married?
And if they decide to purchase the house before marriage then this decision requires a considerable amount of thought. Most individuals prefer to buy a house before getting married. So if you too, wish to buy a house before getting married then you must take some appropriate steps to keep yourself protected, both before and after the house purchase – as the Sanford Florida Realtor suggest.
Oftentimes, people get into a house purchase transaction in the excitement and almost immediately they start regretting their decision due to many factors. Thus, preparing to buy a house being unmarried couple require some careful planning and honest conversations.
Considerations for Buying a House before Marriage
Current Financial Standing
As per the Lake Mary Realtors, be clear about your financial standing before entering into a house purchase contract. You must share with your partner, your up-to-date and current information in terms of debt, credit score, income, and several other financial obligations. You will also need this information to get a mortgage anyway.
One factor that many couples fail to consider is that purchasing a house before marriage requires a complete understanding of the debt obligations. When a couple co-signs a mortgage, each party is equally responsible to pay off the complete debt. So regardless of whether or not you are together, if either of the party decided not to make mortgage payments, you will solely be held responsible.
Credit Scores
Your credit score, as well as the score of your partner, is a highly significant factor to get a mortgage. When you have a higher credit score, it lets you get a better mortgage rate, helping you to save thousands of dollars throughout the loan duration.
If you are married, your scores will be lumped together. But in case you are purchasing a house before getting married then they will be considered separately. If you take the option of using the better credit score of your partner to apply for the mortgage, you may avoid the drag of the low credit score on the term of your loan.
But you must not forget that taking out a loan by showing the better credit score of your partner also limits the loan amount. As it takes that person’s income into account for the house purchase, as suggested by the Sanford Florida Realtors.
Future Payments
The most leading cause of relationship troubles is the money problems. An unplanned purchase of your house can easily turn into money problems. This means that if you are buying a house with your partner, you need to lay out clearly who is paying what and how much.
These expenses may include down payment, mortgage payment, fees, maintenance cost and cost of any other upgrades.
Remember a house purchase transaction is a legal contract. If you fail to plan it properly, you may end up facing legal consequences.
To get more information about house purchase, head over to Megan Dowdy Realty right away.
