One of the things that excite couples and newly-weds the most, is living in a home and sharing a life together. Most couples and newly-weds dream of buying a home to secure a place for themselves in the coming years. Often, it’s the first time they’ll purchase their own home.
Buying a home is definitely one of their biggest financial investments. As couples start their journey together, there’s certainly a need to make wise and informed decisions, each and every step of the way.
When couples are finally ready to buy their first home, nothing can stop them – not even the down payment. Thus, one of the most common mistakes newly-weds make in buying their first home is draining their savings just for that, the down payment. They dangerously overlook the hidden costs and unexpected expenses in buying and owning a home. Sometimes, couples also get tempted to put a smaller down payment. While it may seem like they’re saving money, it could end up costing them much more, with higher payments.
To help couples and newly-weds safely move toward buying a home, here are some essential tips they need to know.
Six Essential Tips Couples and Newly-Weds Need to Know in Buying their First Home
1. Start with a clean slate by paying off debt
Buying a home while having outstanding debt is like running with weights on your feet. It’ll be difficult to move forward. Before taking on a new mortgage or loan, it’s important to free yourself from any financial responsibilities that could hold you back, such as credit card debts.
Yes, it’s thrilling to plan to buy a home as newly-weds and young couples, but you need to “hit pause” until you’ve finally gone through all your existing debts.
2. Get pre-approved
One of the biggest heartbreaks in a couple’s home buying journey is falling in love with a house that you can’t afford. Pre-approval is key! Getting pre-approved is the most important thing to prioritize, so you can understand how much you can afford and what’s in your price range.
Make sure you have a mortgage broker to help you review your documents and assess your financial situation, so you’ll know how much purchasing power you have.
3. Prioritize and research the property
Unlike any other purchase, buying the wrong home is something that could haunt you for the rest of your life. Prioritize what you need in terms of size and design. For instance, if you’re a couple with no kids, a smaller home may be more suitable for you. This is in contrast with those who want a larger home with more rooms, to fit the entire family.
Once you’ve prioritized your preferences, you can research the specifics of the home, neighbourhood and amenities within the community. Oh and make sure to conduct a home inspection and do a review on the maintenance or repair history of the property. It’s the perfect time to be meticulous.
4. Budget effectively
Once you’ve determined your actual purchasing power (considering current debts, financial situation and credit history) vis-à-vis the home suitable to your needs, it’s time to work through your budget. Aside from the expenses of buying a home, there’ll also be moving expenses, as well as other expenses such as purchasing furniture, appliances and of course maintenance costs. Be sure to properly allocate your cash flow, so you’ll have a clear view of how and where to divert your funds.
Here’s a pro-tip: Build an emergency fund of three to six months worth of living expenses. In this way, nothing will catch you off-guard when it comes to expenses!
5. Seek help from experts
Buying a home and starting a new chapter in your life are both thrilling and daunting. To make everything simpler, it’s important to work with those who know the field, especially when it comes to the in’s and out’s of buying a home.
A mortgage broker with an excellent track record is one who can review your financial situation with you so that you can maximize the market. There’s always a suitable deal for newly-weds and couples buying a home for the first time. Working with a broker will definitely ease your worries from start to finish.
6. Work towards financial security
Buying a home is the biggest investment most couples make in their lifetime! The journey of home-owning doesn’t simply end with securing the keys to your new home and moving in. Obtaining a good credit score and maintaining at least two sources of income are good steps in preparing yourselves for your very own home buying journey.
Don’t rush and take secured steps
Needless to say, it’s easy to make rookie mistakes, especially when you’re excited about a fresh start. These mistakes may cost newly-weds thousands of dollars, or worse, may end up purchasing a home that is not suitable for them!
Luckily, mistakes can be avoidable, with the help of proper planning and guidance. Contact Daisy Raouph and let her help you get pre-approved and begin your home buying journey.