February 15, 2020
3 MINUTE READ
Many committed or engaged couples today want to get the experience of living together before they get married. After all, with a serious commitment on the horizon, they feel it only makes sense to stop renting and consider purchasing a house — but is this really the case?
There are several factors that couples should consider before they take the next step of buying a house together before marriage. Read on to find out more.
It’s no secret that both buying a house and getting married can quickly drain your finances. If you’re on the fence about buying a house with your partner before getting married, you should decide together which makes the most sense for you right now. If you decide you really want to buy a house together before getting married, there are a number of things that you should consider.
If you buy a house before getting married, you will likely both be assessed financially as individuals. In a truly best-case scenario, both you and your partner will have excellent credit — in this case, you’ll likely have no trouble securing financing for a home.
However, if one of you has poor credit, it may be a good idea to wait until after you’re married to buy a home, in order to improve your chances of successfully securing financing. Once you’re married, the individual with the better credit has the option of applying for the mortgage loan on his or her own — making it not only more likely that you’ll be approved for a loan, but you’ll most likely also be offered better terms.
One of the hurdles young couples trying to buy a house most often report is their outstanding student loan debt. As you know, the amount of student loan debt you have affects your credit score — which, in turn, affects the amount you’ll qualify for and the loan terms you’ll be offered. Depending on your individual situation, it may be best to delay buying a home for now and focus on paying down your student loan debt first.
One of the biggest factors in determining the right time to buy a home is mortgage rates. It’s no surprise that you want to get the best deal possible, and even fractions of a percentage point in interest rates can add up to big savings over the lifetime of the traditional 30-year mortgage loan. Whether or not you’re married won’t impact the loan amount you qualify for or the interest rate you’ll receive, unless your credit score changes.
Arguably, one of the biggest perks of buying a home together before getting married is being able to enjoy living together before the ceremony. Living together allows you to enjoy the excitement and joy of married life, even before the big day. Plus, living together is a great way to take your bond to the next level.
Of course, if owning a home together is high on your list of priorities, be sure to research your state laws. For instance, some states won’t let couples share legal ownership of a home unless they are legally married.
As you can see, deciding whether or not to buy a house before getting married depends on a number of factors. There are legal and financial implications that you should consider to make sure that you’re making the right decision for you and your partner. The right real estate agent will be able to help you with these decisions, acting as an expert with your best interest in mind.